The sales tax centre is one of QuickBooks Online's most powerful features, and using the appropriate tax codes is the best way to unlock its full potential. The system automatically creates common tax codes based on your location, which includes Out of Scope, Exempt, and Zero-rated. I'll be happy to assist you with these.
The Out of Scope tax code is something you should assign to transactions that have no impact on your tax liability or returns. Unlike Exempt and Zero-rated which should be used according to the CRA's specifications, Out of Scope can be used to separate transactions from the system's tax tracking feature. Check out our handy list of common sales tax codes for more information.