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Hannah_Rees
Level 1

VAT Codes

Hi QB Community,

I have an invoice from a US supplier and am confused as to the VAT code I should use.

Would it be No VAT or Exempt?

Thanks in advance for your help,

 

Hannah

 

2 REPLIES 2
BFSLtd
Level 1

VAT Codes

As far as I’m aware if you are a VAT registered business then you can claim back 20% for import tax. I would suggest putting it on as import or input tax so it’s separate on your reporting. 
However if your not VAT registered then there is no need to add VAT as you can’t claim it back. 

paul72
Level 8

VAT Codes

Hi @Hannah_Rees 

 

@BFSLtd is partly right but there are quite a few ifs, buts & maybes to add.  To avoid confusion, a couple of questions...

First point is, are you VAT registered?

(I'm also assuming you're in the UK)

Second, is the invoice for goods (physically imported into the UK), goods (remaining outside the UK) or services (delivered/consumed if that's the correct phrase inside or outside the UK)?

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