If a client buys product excluding VAT and later adds a procurement fee. If they are not VAT registered, how do they tax this?Client buys products including VAT and wants to pass this cost on to the client. How do they handle this if they are not VAT registered?How is the profit calculated for VAT included pricing vs. for VAT excluded pricing? This would be for clients that are not VAT registered.Client is unsure whether to select VAT included or excluded.. What determines this?What are rules for pros that are not VAT registered? Do they not charge tax to the client but pay VAT when they purchase? How is markup tax handled?

Question

VAT Questions

If a client buys product excluding VAT and later adds a procurement fee. If they are not VAT registered, how do they tax this?
Client buys products including VAT and wants to pass this cost on to the client. How do they handle this if they are not VAT registered?
How is the profit calculated for VAT included pricing vs. for VAT excluded pricing? This would be for clients that are not VAT registered.
Client is unsure whether to select VAT included or excluded.. What determines this?
What are rules for pros that are not VAT registered? Do they not charge tax to the client but pay VAT when they purchase? How is markup tax handled?

VAT is (mostly) pretty straightforward. The key is not to over-think it.

(Yes - there are some weird rules but that's mostly around export/import)

Any business, professional that is not VAT registered is effectively in the same position as Joe Bloggs shopping on the High Street.

If you are not VAT registered, your Cost Price includes any VAT you will have paid.

If you are not VAT registered, you cannot charge VAT to your customer.

This means your profit is reduced versus someone who is VAT registered.

In QBO, if you are not VAT registered then switch off VAT in the Settings - it is not relevant & doesn't need to be thought about.

Hope this helps.