For VAT return, Where should I input Supplier's VAT code in expenses category ? or should I input deposit (sales) category?

Hi there, britannia.

Understanding the appropriate VAT codes for your products and services is crucial for accurate tax payments and avoiding penalties during VAT return submissions to HMRC. While we are unable to provide specific VAT code recommendations, it is recommended to consult with an accountant or HMRC to verify the correct one for accurate tracking.

You can also check out this article to find a list of common VAT codes and how they’re used on the sales and purchase forms in QuickBooks Online: VAT codes: A complete guide.

Once identified, you can now set up a VAT category on your accounts. Here's how:

1. Go to Transactions and select Chart of accounts.
2. Locate the account, then click Edit.
3. Under Default VAT Code, choose the rate you want to apply.
4. Once done, hit Save and Close.
5. Repeat the steps for the other accounts.

After that, you're good to file a VAT return. 

Finally, I've added these resources that can help you learn more about using the VAT feature and setting up codes: 

• Set up and use the VAT feature in QuickBooks Online
• Set up and edit VAT settings, codes, and rates in QuickBooks Online

I'll be around whenever you have questions about filing VAT returns. Keep safe!