I am non vat registered but my supplier invoices have VAT on them. How do I enter that in the purchase invoice? By marking it as VAT it goes to VAT susp a/c - seems wrong

Hello Garywatts000, 

Thanks for reaching out to us on the Community page,

With you not being vat registered, you wouldn't need to put vat on the invoice as it would not affect you as your are not vat registered, however we are not trained accountants, I would advise you speak to one with this query to confirm this.  

Hi @garywatts000 

You should be using No VAT code on every transaction.

I'm not sure but, when you registered for QBO, there was probably a tick box for VAT on/off.

According to

https://quickbooks.intuit.com/learn-support/en-uk/vat/turn-off-vat-field/00/238429 

& 

https://quickbooks.intuit.com/learn-support/en-uk/vat/we-de-registered-from-vat-on-31st-november-how... 

you cannot turn off completely once it's been activated.

Best you can do, tell QBO to ignore VAT on the entry forms.

• Click on the Company Cog in the top right hand corner.
• Select Account and Settings.
• Click Advanced from the left hand options.
• Under the section Accounting click the edit icon.
• Change Default tax rate selection to No VAT.

Now, when you enter a bill/expense you enter the full cost (with VAT) as your expense - QB logs all transactions as No VAT & puts the full amounts to P&L rather than 20% going to VAT Susp.

Hope this helps.

many thanks !