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hein
Level 1

How can I disable VAT until the company is registered for VAT after which I would like to reactivate?

The company will be registered for VAT soon, but I am now categorising the transaction for the preceding 2 years and would like to disable the VAT whilst categorising.
1 Comment 1
MirriamM
Moderator

How can I disable VAT until the company is registered for VAT after which I would like to reactivate?

Hi there, @hein. Let me share information about disabling VAT in QuickBooks Online (QBO).

 

Once the VAT feature is turned on in QBO, the option to turn it off is unavailable. As a workaround since you're not VAT registered, you can set the default tax rate selection to Out of Scope of Tax or No VAT from your account's settings. This way, your future transactions will not be linked to any taxes or VAT.

 

To do this, here's how:

 

  1. On your QBO account, go to the Gear icon at the top.
  2. Select Account and settings.
  3. In the left menu, click Advanced.
  4. Go to the Accounting section. 
  5. Choose Out of scope of Tax from the Default tax rate selection
  6. Click Save, then Done.

 

If you happen having a pending VAT entries, to record, adjust and delete VAT payments, here's an article you can read for a guide: Manage VAT payments in QuickBooks Online.

 

After that, you're now ready to track your no VAT sales and purchases. Here are some links for your reference:

 

 

Please don't hesitate to reach back out if you have additional questions managing VAT or any other concerns. I'll be right here to lend a hand.