Should I add vat on expenses when I am not vat registered ?

Welcome aboard to the Community space, @boltsmechanic-gm.

You can manage your VAT when creating transactions in QuickBooks Online. Also, you have the option to keep track of it in both purchases and sales.

To begin, you must enable the VAT option in QBO. Here’s how:

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

Regarding adding VAT without being registered, when creating a sales transaction that does not include VAT, you can select NO VAT as the option so that it does not appear on your VAT return.

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

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

In addition, here’s an article that you can refer to when setting up and editing VAT settings, codes, and rates in QBO.

Don’t hesitate to drop a comment if you have additional questions about taxes. Stay safe!