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Lex2021
September 15, 2021
Question

VAT

  • September 15, 2021
  • 1 reply
  • 0 views

Hi,

 

Appologies in advance if this is a silly question -

We are currently not registered for VAT, no VAT is included in our sales. When I have been recording our payments/purchases, I have been logging VAT as shown on receipts for payments. I have noticed on a report we have a figure against VAT liability, would this be due to be logging the VAT on receipts? Should I be recording everything as no VAT or am I doing it correctly? We will likely be registering ourselves in the next 3-4 months. 

 

Thanks

1 reply

AlcaeusF
AlcaeusF
September 15, 2021

Welcome back to the Community, @Lex2021.

 

You're already on the right track! I'm here to answer your concerns about VAT in QuickBooks Online (QBO).

 

You have the option to track VAT on both purchases and sales in QBO. In this case, if you need to rack of purchases, you can record the VAT on your payments.

 

For your sales, there's no need to include VAT since you're not registered yet. Just make sure to NO VAT in the option/code when creating a sales transaction, so it'll not report on your VAT return.

 

You can also read through these articles about managing VAT in QBO for future reference:

 

 

I'll be right here to help if you need anything else. Enjoy the rest of your day!

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