I've read the Common VAT codes but recently the codes offered in the QBO drop down list seem to differ. For example is Code E (0%) the same as Exempt? Is Code N (0%) the same as No VAT? Sometimes NO VAT is not offered as a choice.
Where can I find a glossary of VAT Code meanings that actually coincide with the VAT codes offered by QBO?
I must be missing something as up until recently, VAT coding seemed a lot more straightforward.
Thank you for contacting Community.
The VAT codes listed on QuickBooks are set as default based on HMRC's tax code system. A short description of the tax codes can be found on the QuickBooks Taxes page. If you click Taxes on the left of the screen and then click the drop down arrow next to Edit VAT in the top right corner, you will have the option to Edit Rates. Here you will find a list of descriptions for the current rates active on your QuickBooks Online account.
If you have any further queries regarding specific VAT codes, I would recommend speaking directly with HMRC's VAT department, their contact number is 0300 200 3700.
Let me know if you have any queries. Or, if you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours.
Vat coding is required by HMRC not only to account for vat opwd/refunded but to gather information.
S = standard rate vAT
R = Reduced rate (Gas & Electricity)
E = Exempt
N = Not registered.
Not Vat records no information to the tax return and for Uk is rarely used.
Now it gets more interesting
Ecs = Ec services
Ecg = Ec goods
Ecz ec zero rated
Anything with Ec is to do with Ec trade and there are various scenarios as to which apply
In the Irish QuickBooks Online it requires the user to set up the VAT codes they are using so that code has been named SNR23% by whoever set it up (unless the data was migrated in from another software) with 23% being the Standard in Ireland it is likely that this is the code that was being set up.
If you go to taxes on the left hand side>go to edit in the top right and select the drop down>edit settings>there should be code there named SNR23%> if you hit on edit it will give you more information on it and you can edit it in that section
If you have migrated the data let us know
I m not an accountant and not planning to become one, so I really appreciate Xero's efforts to name the VAT codes literally, so that I do not have to spend precious time to decode the nicknames and shortcuts