vat

Hello there, @omega2011. 

Thanks for posting here in the Community. I understand that you'd want to keep the VAT off in the VAT return. 

When you choose a No VAT code for your transactions, the amount of the transaction will appear in the report but with no tax amount. 

Since this isn't a purchase transaction and doesn't come into the 0% category, I'd recommend you deselect the vat code, or you may not select any vat codes for this transaction so it won't appear in the VAT returns. 

To learn more about Vat codes and when to choose them, check out these articles for future reference:

• VAT: Getting Started
• Common VAT Codes

Let me know if you have additional questions about VAT returns, @omega2011. I'm always around here to help. 

Thank you Katherine. I looked at it with fresh eyes this morning and now have it sorted. I am coming off Quickbooks desktop which I have used for 30 odd years. In that, you could leave the vat code blank when entering the transactions or choose OOS or No vat, and the transaction did not appear on the return. In quickbooks online the two codes mentioned above show up as a 0% rate on the return so I now see that you need to choose the 'Amounts Are' box on entry and you can choose inclusive or exclusive of vat and the one I needed, 'Outside of scope of Tax' is available there also. So if anyone else is having this problem, that is the simple solution.