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Turn off VAT in QuickBooks

by Intuit•45• Updated 1 week ago

Once you set up VAT in QuickBooks Online, it can't be turned off. But don't worry, we'll show you how to set the default VAT to 'No VAT' and stop VAT from showing in future transactions.

If you deregistered from VAT, you can also use the steps in this article to help reduce the chance of VAT posting in error.

Set the default tax selection to 'No VAT'

Go to Taxes and select the gear icon.
Select Account and settings.
In the Advanced tab, look for Accounting and select the pencil icon.
Change the default tax selection to No VAT.
Select Save and then Done.

Turn off Making Tax Digital (MTD)

Select the gear icon and select Account and settings.
Select Advance.
Select the pencil icon next to Making Tax Digital.
Select Learn how to Disconnect and follow the steps.

You can always turn on MTD for VAT and authorise QuickBooks again.

Turn off VAT in banking feeds

If you have bank accounts connected to QuickBooks, you will need to set up a new bank rule so that transactions are set to 'No VAT' in your banking feed.

Go to Transactions and select Rules (Take me there).
Select New rule.
Give the new rule a memorable name like ‘VAT de-registration money in’.
Select Money in.
Change Description to Amount.
In the next field, select Is greater than.
Enter 0.01 in the value field.
Select No VAT for the tax rate.
Repeat the steps for Money out.

Remove the VAT number and turn off MTD after the last VAT return submission

Go to Taxes, and the select VAT.
Select Edit VAT.
Select Edit settings.
Turn off MTD.
Enter ‘no longer VAT registered’ into the VAT registration number field.

Turn off all VAT codes

Go to Taxes, and the select VAT.
Select Edit VAT.
Select Edit rates.
Turn off all the VAT codes.

The default tax rate available in QuickBooks is No VAT (0%).

Set all account categories in your chart of accounts to 'No VAT'

Go to Transactions, and then select Chart of accounts (Take me there).
Tick the box to select all accounts.
Select Batch actions.
Select Set default VAT code.
Select No VAT.
Select Apply.

Remove the VAT settings an invoice template

Select the gear icon and select Account and settings.
Select Sales.
Next to Customise, select Customise look and feel.
Select New style.
Select Invoice.
Select the Content tab.
Select the header on the sample form to start editing that section. Under Display, remove Customer VAT number.
Select the content on the sample form to start editing that section. Remove the VAT column.
Select the footer on the sample form to start editing that section. Remove VAT summary.
Select Done.

Tip: Due a VAT refund? Did you know, with InstantVAT by our partner Adsum you can receive your repayment in as little as 24 hours - saving you several weeks of waiting for your repayments each year. Sign up today.

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