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July 6, 2022
Question

I am not VAT registered but appear to have accidentally enabled VAT. Can this be turned off and now I have extra information needed when I input expenses

  • July 6, 2022
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1 reply

July 6, 2022

I'd like to provide insights about turning off VAT in QuickBooks Online, @catherine.scate.

 

Once you turn on VAT in your QBO account, the option to turn it off is no longer available. This is a result of accounts and transactions not reporting accurately for any transactions that historically have been recorded in the books but do have a VAT number on them.

 

To avoid being asked to submit a VAT code when creating transactions, you can instead modify the default settings for VAT to No VAT. When you do become VAT liable again, you can later change this to either Exclusive or Inclusive of VAT. I'll show you how to do that:

 

  1. Click on the Gear icon.
  2. Choose Accounts and Settings
  3. Open the Advanced tab
  4. Access the Accounting section to expand the accounting options.
  5. Edit the Default tax rate selection to 'No VAT'
  6. Don't forget to click on Save to record the change.

 

The default will be No VAT when you create transactions. In addition, the VAT Code column will no longer appear on the transaction screen.

 

I'm also adding this guide about handling VAT liability in QBO: Make VAT adjustments in QuickBooks Online.

 

Fill me in if you need anything else about this matter or QuickBooks. I'd be glad to assist further. Have a great rest of the week!