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dhedley
November 18, 2021
Solved

Correct Selection from drop down when entering a bill from a supplier that is not VAT registered

  • November 18, 2021
  • 2 replies
  • 0 views

Hi,

the business I am entering invoices for is VAT registered but some suppliers are not - when entering a bill, from the drop down do I choose amounts are exclusive of  VAT or do I select No VAT ?

 

Thanks

Best answer by RoseJillB

Happy to have you here in the Community, @dhedley. Let me help you with what VAT code to use for your Non-VAT supplier in QuickBooks Online (QBO).

 

Yes, you can use the  No VAT code since your supplier is not registered. This code is for goods and services that are outside the scope of VAT. We'd recommend looking for further information on what VAT codes to use for your sales taxes by checking  this article on QBO UK.

 

You can also refer to this UK Government article for more information on when to use No VAT code.

 

If the business is fully VAT-registered, kindly follow this article to set up the VAT codes and rates: Set up and edit VAT settings, codes and rates.

 

If further assistance is needed with what codes to use in setting up VAT, we'd recommend speaking with HMRC. Have a great day!

2 replies

R
RoseJillBAnswer
November 18, 2021

Happy to have you here in the Community, @dhedley. Let me help you with what VAT code to use for your Non-VAT supplier in QuickBooks Online (QBO).

 

Yes, you can use the  No VAT code since your supplier is not registered. This code is for goods and services that are outside the scope of VAT. We'd recommend looking for further information on what VAT codes to use for your sales taxes by checking  this article on QBO UK.

 

You can also refer to this UK Government article for more information on when to use No VAT code.

 

If the business is fully VAT-registered, kindly follow this article to set up the VAT codes and rates: Set up and edit VAT settings, codes and rates.

 

If further assistance is needed with what codes to use in setting up VAT, we'd recommend speaking with HMRC. Have a great day!

    D
    dhedleyAuthor
    November 20, 2021

    Thanks Rose, most helpful

    paul72
    paul72
    November 19, 2021

    Hi @dhedley 

     

    While the answer from @RoseJillB may be strictly correct (there is a semantic point on whether an otherwise VATable item moves outside the scope of VAT when handled by a non-registered business), please be aware that NO VAT items do not show on the VAT Return or standard VAT reports which may create discrepancies when comparing VAT Returns/reports against Sales/Purchases reports.

     

    Personally, I have always used Z=0% for items from non-registered suppliers.  That way my VAT Returns tally with Sales/Purchases reports & mean that any discrepancy is an actual mistake.

      D
      dhedleyAuthor
      November 20, 2021

      Thanks Paul, thats a good point you raise and will certainly save time on reconciliations

       

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