Using the "No VAT" vat code and Box 7 of VAT return

Jon 1 · ‎February 13, 2020

Hi QB

I am compiling my first VAT return using QB online - (I am also parallel running using Excel just to verify). All VAT boxes appear to be correct, with the exception of Box 7 "Net value of purchases".

This box includes items I have allocated the "No VAT" vat code against, such as payroll, PAYE and NI payments, and dividends - all of which should not be included in Box 7 (as per the HMRC web site). All these payments have been included in QB via the banking down load, where I have chosen the VAT code "No VAT".

I assumed that when choosing "No VAT" then these items would not appear on the VAT return.

What should I have done to exclude these items from the VAT return?

Should I be using a different VAT code, or perhaps no VAT code at all?

or is there a check-box which will allow these items to be excluded ?

Any help would be appreciated.

Thanks QB

Jon 1

Ashleigh1 · ‎February 13, 2020

Hello Jon1,

Thanks for reaching out to us on the Community page,

When selecting NO VAT as a tax code it should not be hitting any of the boxes at all. The link below shows you which vat codes hit which box. Could you seen us a screenshot of your not vat hitting box 7 so we can have a look into this for you. Thanks

https://quickbooks.intuit.com/learn-support/en-uk/vat/common-vat-codes/01/239529

View solution in original post

Ashleigh1 · ‎February 13, 2020

Hello Jon1,

Thanks for reaching out to us on the Community page,

When selecting NO VAT as a tax code it should not be hitting any of the boxes at all. The link below shows you which vat codes hit which box. Could you seen us a screenshot of your not vat hitting box 7 so we can have a look into this for you. Thanks

https://quickbooks.intuit.com/learn-support/en-uk/vat/common-vat-codes/01/239529

Jon 1 · ‎February 13, 2020

Hi Ashleigh1,

Oh pants - (accounting technical term).

I have just gone through all the transactions once more, and have realised that the items appearing in Box 7 have been coded as Exempt, in error. I have switched them over to No Vat, and low and behold, everything works just fine.

My bad ... and hangover from trying to sort the VAT out too late last night !

Thanks for your help anyway, and apologies

J1

Ashleigh1 · ‎February 13, 2020

Hello Jon1,

Its no problem at all.

Glad to hear you realised the error made and that your vat account is now showing correct for you in your Quickbooks.

If you have any other queries please do not hesitate to reach back out to us, we will be more then happy to help.

Rajks · ‎February 02, 2021

Hi there,

I have entered purchases using exempt instead of no vat code. And to top it off I have foolishly run and submitted my vat return?

how do I resolve and recover my vat return and correct all the codes to no vat please?

thanks

Rajks · ‎February 02, 2021

I forgot to mention I use the QB online application.

thx Raj

Catherine_B · ‎February 03, 2021

Hello there, Raj.

We're unable to unfile a submitted return as per the HMRC process. Any adjustments that need to be made to the return will require you to make a subsequent VAT return. You can contact the agency directly so they can help you through making changes or amendments to your VAT return.

Feel free to use these resources for future references:

Keep me posted if there's anything else that you need help with. Take care!

Atul Talele · ‎September 27, 2021

The above mentioned error of Jon 1 not yet solved. We are getting the same error while selecting the No VAT code from the section Inclusive and Exclusive options.

The program should not included the transctions of No VAT in the VAT returns whether these are posting from No VAT section or from the section of Inclusive and Exclusive drop down selection.

Ashleigh1 · ‎September 27, 2021

Hello Atul Talele, thanks for posting on this thread can you double check that you have defiantly coded it as NO VAT and not exempt please.

LlowN · ‎October 12, 2021

Hi Ashleigh1

I am also having problems with Box 7

Within QB Help under "VAT codes and rates' it lists common VAT codes and includes a 'No VAT' option - however this option is not appearing as a standard option that I can select/deselect in the drop down menu for the common VAT codes? (It includes a list of 16 options).

Can you provide any help/advise?

John C · ‎October 12, 2021

Hi LlowN When you create a transaction there should be a option for No VAT in the amounts are field.

LlowN · ‎October 12, 2021

Huge thanks,

I think where I was getting confused is in the taxes section, under VAT rates, the No VAT option doesn't appear which is why I thought I was having issues with Box 7, but doh, this is probably because its not a VAT rate.

Many thanks again

R Conroy · ‎January 10, 2023

These are the VAT codes on the .gov website: It would be great if quickbooks could match this to save confusion ; eg change Exempt to Zero as below ; then change No Vat to Outside scope/Exempt then we wouldn't all have the same issue!

VAT rates for goods and services

% of VAT What the rate applies toStandard rateReduced rateZero rate


20%	Most goods and services
5%	Some goods and services, eg children’s car seats and home energy
0%	Zero-rated goods and services, eg most food and children’s clothes

The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%).

Thanks please look into this it would save so much work and queries, your coding is very confusing!

John C · ‎January 10, 2023

Hi R Conroy We'll certainly pass your comments on to our developers and encourage you to leave feedback from within the product. In the meantime please refer to the link we've included which demonstrates how QuickBooks VAT codes populate. https://quickbooks.intuit.com/learn-support/en-uk/value-added-tax/common-vat-codes/00/239529

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Using the "No VAT" vat code and Box 7 of VAT return