Hello there, @dkkgroundwork,
While I'm unable to recommend which VAT code to use for your purchases from Non-VAT business, I suggest consulting this with your accountant. Nevertheless, I'm here to share some common VAT codes in the program.
- The 20.0 % S is the standard VAT rate. If your business is VAT registered, you'll have to apply this rate on all goods and services you supply.
- The 5.0% R is the reduced VAT rate. This applies to some goods and services including items such as domestic heating fuel and children's car seats.
- The 0.00% Z is the zero VAT rate. This means the VAT rate is zero percent although it is taxable for VAT.
- There are goods and services that are Exempt from VAT. This includes insurance, services from doctors and dentists, and some types of education and training.
- The 20.0% RC SG is the default reverse charge VAT code for services.
- The 20.0% RC MPCCs is the reverse charge for the purchase of computer chips and mobile phones.
- No VAT includes goods and services that are outside the scope of VAT and aren't reported on the VAT return.
You can also go to the HMRC website for further details about VAT rates:
To learn more about the VAT codes in the system, here's a great article you can refer to: Common VAT Codes. If you're using the Flat Rate Scheme, you'll know that some of the codes won't post in the same way as standard VAT.
This will get you in the right direction, @dkkgroundwork.
I'll be around to help if you need further assistance. Have a good day.
