Skip to main content
B
ben9832475
April 24, 2025
Question

0% VAT

  • April 24, 2025
  • 1 reply
  • 0 views

Can some-one please give me some advice on which type of 0% VAT I need to assign to the attached expenses.

 

1. Backblaze - Based in the US. I have obviously at set up given them my VAT number and it's on their invoice and says VAT exempt.

2. NameCheap - Based in the US. Nothing about VAT on the invoice.

3. ScrapeHero - Upon googling it says they are based in USA. No address on invoice. 

 

So which VAT do I assign?

 

0.0% Z (0%)

No Vat (0%)

Exempt (0%)

 

[attached PII removed by Moderator]

1 reply

J
JorgetteG
April 25, 2025

I'm glad you're here, Ben. Understanding VAT classifications can be challenging, especially when dealing with international transactions.

 

Here's a general overview to help you:

 

  1. VAT Exempt: Use this category for goods or services legally exempt from VAT.
  2. No VAT: This category should be selected for transactions where VAT is not applicable, commonly for businesses not registered for VAT or located outside the VAT system, such as in the United States.
  3. 0.0% Z: This rate applies specifically to goods or services that meet particular criteria under VAT regulations.

 

For more information, check this article: Understanding VAT codes in QuickBooks.

 

It's crucial to categorize each transaction correctly, as it can be specific and vary based on the transaction and involved entities. Consulting an accountant or tax advisor for personalized guidance is advisable to ensure compliance with VAT regulations.

 

Additionally, you can explore this article. It provides a detailed breakdown of all VAT-related transactions, helping you verify accuracy, detect errors, and prepare for audits. Reviewing this report regularly can enhance the accuracy and compliance of your VAT returns: VAT Detail Report.

 

Thank you for sharing your concern with us here in the QuickBooks Community, Ben. Feel free to revisit this thread if you have more questions. We're always here to assist you.

Terms & ConditionsAccessibility statement