cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Not applicable

My business is not VAT registered (for sales), how do I record this on quickbooks? I need to keep a record of VAT on purchases though

I am new to quickbooks and cannot see if there is anywhere to detail that my business is not VAT registered? Or a box to tick to say sales receipts do not include vat?

Solved
Best answer 02-07-2019

Accepted Solutions
Not applicable

Hello tillystearooms, I'm happy you're here. Thank you fo...

Hello tillystearooms,

I'm happy you're here. Thank you for being a part of QuickBooks Online (QBO).

QuickBooks Online has a feature to manage your VAT when creating transactions. You have the option to track it on both purchases and sales.

First off, you'll need to turn on the VAT feature in QBO. Here's how:

  1. Click Taxes.
  2. Click Set up VAT.
  3. Enter information needed.
  4. Click Next.

For your other question, when you create a sales transactions without VAT, you can use NO VAT in the option so it'll not report on your VAT return.

Here are the steps on how to use No VAT option in your sales receipt:

  1. Click Plus (+) icon.
  2. Choose Sales Receipt.
  3. Under Amounts are, choose No VAT.
  4. Enter information needed.
  5. Click Save and Close.

I've also outlined the steps in the screenshots for the visual reference.

For more information, you can refer to these articles:

Don't hesitate to drop me a comment below if you have additional questions.

9 REPLIES 9
Not applicable

Hello tillystearooms, I'm happy you're here. Thank you fo...

Hello tillystearooms,

I'm happy you're here. Thank you for being a part of QuickBooks Online (QBO).

QuickBooks Online has a feature to manage your VAT when creating transactions. You have the option to track it on both purchases and sales.

First off, you'll need to turn on the VAT feature in QBO. Here's how:

  1. Click Taxes.
  2. Click Set up VAT.
  3. Enter information needed.
  4. Click Next.

For your other question, when you create a sales transactions without VAT, you can use NO VAT in the option so it'll not report on your VAT return.

Here are the steps on how to use No VAT option in your sales receipt:

  1. Click Plus (+) icon.
  2. Choose Sales Receipt.
  3. Under Amounts are, choose No VAT.
  4. Enter information needed.
  5. Click Save and Close.

I've also outlined the steps in the screenshots for the visual reference.

For more information, you can refer to these articles:

Don't hesitate to drop me a comment below if you have additional questions.

Frequent Contributor **

If you are not vat registered then you do not need to rec...

If you are not vat registered then you do not need to record vat on either sales or purchases.

Just do not set up taxes.

Record every thing gross inclusive of vat.

Not applicable

Re: If you are not vat registered then you do not need to rec...

Hi, I'm not VAT registered and trying to configure QBO for the first time.

The advice seems to say fill in the Setup VAT form and then turn off VAT.

 

My question.... If you aren't VAT registered then you don't have a VAT reg number, so how can you complete the Setup VAT form...??!

 

Agggghh

Help

 

Thanks

Giles

QuickBooks Team

Re: If you are not vat registered then you do not need to rec...

Hello Giles,

 

If you are not VAT registered you do not need to set up VAT - leave the Taxes section blank.

 

Thanks,

 

Talia

Not applicable

Re: If you are not vat registered then you do not need to rec...

I am trying to sync with Studio Ninja and it requires a tax setting.

The answer...

 

Fill out form but leave VAT reg number blank.

Setup up dummy expense and then set default tax to No Vat.

 

Thank for your help

Giles

QuickBooks Team

Re: If you are not vat registered then you do not need to rec...

Hi Giles

 

Yes you would need to set up the default tax code to be NO VAT, if you need there to be a tax setting for the app integration,that would be the only way to do that and then not have a tax box to fill in,in every transaction

 

Any questions feel free to contact us in the Community

 

Emma

Not applicable

Re: Hello tillystearooms, I'm happy you're here. Thank you fo...

Hi,

I am also new to Quickbooks. We are not currently vat registered, however may need to be. We want to use quickbooks to organise the accounts from April 18 - April 19, then we will be able to see the turnover and may need to go vat registered? Can we do it in that order? In that case we would need to record vat on purchases just in case, however currently don't charge vat on our sales.

Many thanks,

Jill

QuickBooks Team

Re: Hello tillystearooms, I'm happy you're here. Thank you fo...

Thanks for joining this thread, @lskitchen

 

Yes, you can use the program to organise your accounts from April 18-19 though you're not currently VAT registered. First, you'll need to turn on the VAT feature in QBO. You can perform the steps provided by my peer above on how to turn it on. After that, you'll have an idea if you need to go VAT registered or not. 

 

For your next question, you can record VAT on your purchases. Here's how: 

 

 

  1. Go to the Plus (+) icon at the upper right. 
  2. Under Suppliers, choose your purchases (Expense, Cheque, Bill). 
  3. Make sure not to choose No VAT in the Amount are drop-down. 
  4. Under the VAT drop-down, select the appropriate VAT code
  5. Enter information needed.
  6. Click Save and Close.

 

For more information about the codes, I'm adding this article you can check out: Common VAT Codes

 

Feel free to click the Reply button if you have additional concerns about VAT or should you need anything else. I'll be here to help, @lskitchen

Not applicable

Re: Hello tillystearooms, I'm happy you're here. Thank you fo...

Hi, I am in a similar situation with vat and new to Quickbooks. Not yet vat registered but may be next year. My supplier invoices for stock are ex-vat so i have been using ex-vat prices as cost prices for stock items. Sales invoices, I marked as no vat. Problem is Quickbooks now shows a larger gross profit than reality because it thinks I am claiming back vat on purchases. What is the best and quickest way to fix this? Do I need the change all my purchase invoices so that individual stock items include vat? Then when i am vat registered I would need to change all the stock cost prices.

Not sure of the best way to proceed.