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NessSymplify
May 16, 2024
Question

Compulsory to add VAT rate on expenses despite being on flat rate scheme

  • May 16, 2024
  • 1 reply
  • 0 views

I've just done my first VAT return. I'm on the flat rate scheme. Frustratingly, now I've turned on VAT, quickbooks online makes in compulsory to add a VAT rate for every expense. This is not needed, since we're on the flat rate scheme and all our expenses are under £2,000.00. I've had to go through and edit my auto rules for every expense type to include a VAT rate, and will have to add them on every time I have a new type on expense. Given the whole point of the flat rate scheme is to eliminate the need to keep and input VAT records of your expenses, it's frustrating that Quickbooks makes you input them anyway. Is there any way of turning this off, or setting a default VAT rate for all expenses?

1 reply

E
emmam6
May 16, 2024

Hello NessSymplify, thanks for reaching out to the QuickBooks Community! We're sorry for the frustration the VAT rate on expenses is causing you. There is a way to set a default VAT rate in QuickBooks however it would default for invoices as well. 

The alternative would be going to the chart of accounts (which is in the cog in the top right) under detail click the arrow so it should list the same category ones together> put a tick in all the expense types you use and then go to batch actions>select set default tax code>select the code>then apply. It will then when you create an expense and select that expense category, add in the default rate automatically.

If you are using products or services on the expense, you can go to product and services in the cog in the top right of QuickBooks>select edit on the product or service and scroll down to tax and add in the rate and save it. Once done it will auto populate on the expense/bill when you select the product/service.

 

Any questions feel free to ask.

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