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cautious
October 1, 2022
Question

VAT Codes Exempt or No VAT

  • October 1, 2022
  • 1 reply
  • 0 views

I have used the exempt VAT code for a relevant insurance transaction and for an exchange gain/loss entry, these transactions are appearing on my VAT return for purchases.

 

Is this correct, or should I use the no VAT code for these transactions?

 

1 reply

Angelyn_T
Angelyn_T
October 1, 2022

I can give you insights about the Exempt and No VAT codes, @cautious.

 

The system sets up a list of VAT codes you can use when recording your transactions. Yes. You're correct in using the Exempt code for a relevant insurance transaction. However, the transactions recorded under this code will appear on your VAT returns for purchases. You can change it to NO VAT code if you don't want to include these entries in your VAT report.

 

You can learn more about how each code will report on your VAT return here: QuickBooks Online VAT codes.

 

After choosing the right VAT code for your entries, you may review the resources from this article as your guide in submitting your returns in the future: Submit an MTD for VAT return to HMRC in QuickBooks Online.

 

If you have any other questions about the different VAT codes for your transactions, let me know by adding a comment below. I'll be here to help. Keep safe!

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