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J
JFquick
May 29, 2024
Question

Entering invoices before VAT registration

  • May 29, 2024
  • 1 reply
  • 0 views

Hi

 

We have a company that's been set up in QB when it wasn't required to be VAT registered. We are in the middle of applying for voluntary registration and I'm getting up to date. If I enter a purchase invoice there's no VAT section in which to enter VAT. 

 

I want to enter some purchase invoices for which we will be able to claim input VAT once we get registered. If I go to the VAT section in QB it looks like someone's started to enter details (I inherited this, it's not my doing). If I go to Edit Settings I can see that it wants a VAT number, but I don't have one yet. There's a VAT number in the "What’s your 9-digit VAT registration number?" box but it's rubbish, it doesn't exist.

 

Am I unable to enter purchase invoices and account for the VAT until I have a VAT number? Has VAT been set up incorrectly in this company and is it fix-able?

 

Should I wait until I get the VAT number and then post my invoices? I was hoping to get ahead of the game.

 

Thanks

 

Jon

1 reply

M
MelroseV
May 29, 2024

It's my pleasure to help you with your VAT, JFquick.

 

Since your VAT number is unavailable, you can turn off the Default tax rate selection in Account and Settings in the meantime so you can create an invoice successfully without asking for the VAT number.

 

Here's how:

 

  1. Go to the Gear icon.
  2. Select the Account and Settings.
  3. Click Advanced, then select the Pencil icon in Accounting.
  4. In the Default tax rate selection, click the Exclusive of Tax dropdown.
  5. Select No VAT.

 

Another way to avoid the prompt message when creating an invoice is to select No VAT (0%) from the dropdown in the VAT column.

 

Afterward, when you're done registering for your VAT number, you can edit the tax code to the correct one. You can check this complete guide here to learn more about the VAT: VAT codes in QuickBooks Online: A complete guide.

 

Furthermore, you can utilize this resource to acquire further information about the functionalities of QuickBooks Online and access other instructional articles: Get started on your journey with QuickBooks Online.

 

If you have additional questions about the VAT in QuickBooks Online, feel free to post them here in the Community space. Stay safe!

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