NO VAT tax code

Hello there, @lubru. 

Thanks for coming to the Community for your VAT codes concerns. You may select the Exempt code so it will reflect as No VAT on sales form or purchase from. 

You can check out this article for more insights into the common VAT codes in QuickBooks Online. 

For future reference, you'll want to edit the VAT settings and codes or customize tax. Read through this article to learn some more: Set up and edit VAT settings, VAT codes, and VAT rates.

Feel free to come back and post some more of your concerns here in the Community. I'd be delighted to help.

Hi Katharine, 

I am afraid VAT exempt would not be the correct code for grants expenditure.

In the UK, we cannot claim for VAT on grants expenditure but we still have to report the Net value of those bills on our VAT return. 

VAT exempt code is OK to be used for bills which are exempt from VAT. 

That is not the same of bills with VAT which I cannot claim from my return. 

Any idea on the parameters I have to use for setting up such a VAT code in QBO? 

Thank you! Lucia 

Hello Lubru, Did you migrate from the QuickBooks desktop product? Could you provide a screenshot from the taxes>vat>edit vat>edit rates showing the active and inactive codes so we can look into this? Thanks

Hi Emma, sorry for the delay.

No, I haven't migrated from a desktop product.

Here are my VAT rates, as requested.

There 2 screenshots, so will split into 2 messages.

Thanks very much, Lucia

second screenshot...thank you!