The first step in filing your Value Added Tax return through QuickBooks Online is to set up VAT. This is a process involves entering information about your business, such as its name, address, contact details and banking information. It also requires entering the current rate of VAT.
Once your basic setup is complete, you'll need to select which sales tax codes are applicable for each type of transaction. This helps ensures that the correct VAT is charged for each item or service sold by your business, and will help avoid any costly errors when filing your return.
Make sure you're using the correct VAT registration number and VAT scheme–this is essential for accurate reporting under MTD.