My business is not VAT registered as below the 85k threshold. When recording expenses, do I record the VAT or just show the total amount spent (recording it as No VAT)?

Gary Cruse · ‎August 11, 2020

JenoP · ‎January 23, 2021

Hi there, Jonathan.

Yes, you can still use the QuickBooks Online VAT feature if you're only purpose is to track your taxes and not to file or reclaim them. However, please take note that can only charge VAT if your business is registered for VAT.

Also, the program does not have a specific report intended for VAT threshold calculation. QuickBooks follows the guideline that VAT applies to you as soon as your sales of VAT-taxable goods and services exceeds £85,000.

Although, you can run the No VAT transactions report to see all the transactions that does not have VAT applied to them. Just go to the Reports menu and type in the name of the report in th Search bar. Let me also share these articles with you about tracking VAT in QuickBooks Online:

I would also recommend reaching out to your accountant for further advice on this matter.

The Community is always here if you need anything else.

View solution in original post

John C · ‎August 11, 2020

Hi Gary As you are not VAT registered you will have to allocate all transactions as VAT. You can go to the settings and make No VAT the default to save you amending it every time you create a transaction. Select the cog > account and settings > advanced > Default tax rate selection > No VAT > Save

Jonathan Cohen · ‎January 23, 2021

This doesn't help if you are considering becoming VAT registered in the future and want to consider whether or not the Flat Rate scheme is best for your business, and to go back a few periods to reclaim pre-registration inputs. Is there a way to record the VAT even if you have no intention of reclaiming it yet?

I came on this group to see if there was a good report to check VAT Threshold calculations - i.e to the end of this month, going back 12 months from that date, what it my turnover (for a non-VAT registered entity)? I'm struggling to tell Quickbooks how to go back 11 months and a bit and go forwards until the end of this month, so I can consider how much sales to 'safely make' over the remainder of the month.

JenoP · ‎January 23, 2021

Hi there, Jonathan.

Yes, you can still use the QuickBooks Online VAT feature if you're only purpose is to track your taxes and not to file or reclaim them. However, please take note that can only charge VAT if your business is registered for VAT.

Also, the program does not have a specific report intended for VAT threshold calculation. QuickBooks follows the guideline that VAT applies to you as soon as your sales of VAT-taxable goods and services exceeds £85,000.

Although, you can run the No VAT transactions report to see all the transactions that does not have VAT applied to them. Just go to the Reports menu and type in the name of the report in th Search bar. Let me also share these articles with you about tracking VAT in QuickBooks Online:

I would also recommend reaching out to your accountant for further advice on this matter.

The Community is always here if you need anything else.

Topics

Training

Community

Resources

My business is not VAT registered as below the 85k threshold. When recording expenses, do I record the VAT or just show the total amount spent (recording it as No VAT)?