Hello! Does anyone know how to assign an "Out of Scope" Tax for transactions imported from the "Bank Transactions" tab? Thank you.

Welcome to the Community, Tatiana. I'll share information to help you assign bank transactions to Out of scope inside QuickBooks Online (QBO).

To classify a transaction as Out of scope, you'll want to manually select each of the imported transactions in your Bank transaction page, and in the Tax field, choose the correct classification. I'll be happy to outline the steps to get you going:

1. Access your QuickBooks Online company.
2. On the left navigational bar, select the Transactions tab.
3. Click Bank transactions, and then locate the imported transactions in the For review section.
4. Select a transaction and then in the Tax field, choose your preferred classification. Once done, you can also set the tax code as default for future use.
5. Add the necessary details and then click the Add button once you're ready to categorise the transaction.

However, if you don't want to add 0% to the transaction. You'll want to edit those transactions and add No Vat to it. You can also visit this page to learn more on how to manage bank transactions inside QBO: Categorise online bank transactions in QuickBooks Online.

Furthermore, I'm providing this handy article to help you reconcile an account inside the program: Reconcile an account in QuickBooks Online.

We encourage you to post here again if you have any additional questions related to QuickBooks or need assistance managing imported transactions. Our team looks forward to helping you out again. Keep safe, and have a good one.

Thank you. However I do not want to assign a 0% Tax rate as this would include these transactions as taxable in my VAT return. I would like to set these transactions as "Out of scope", no VAT rate assigned to them. Is this possible? Thank you.

Thank you. However I do not want to assign a 0% Tax rate as this would include these transactions as taxable in my VAT return. I would like to set these transactions as "Out of scope", no VAT rate assigned to them. Is this possible? Thank you.

Thanks for getting back to us, @usertatiana-koumidou. 

I can see your concern about not wanting to assign a 0% tax rate, which would still include the transactions as taxable in your VAT return. I'm here to help you out.

We can select the No VAT option in the Amounts dropdown, you are effectively marking these invoice line items as "Out of Scope" for VAT purposes. This will exclude them from your VAT calculations and reporting, without inadvertently applying a 0% VAT rate.

Here are the steps to select the No VAT option on the Amounts dropdown for the invoice:

1. Open the relevant invoice in QuickBooks.
2. Locate the Amounts are dropdown
3. Instead of leaving this set to the default option (likely Inclusive of VAT or Exclusive of VAT), select the "No VAT" option from the dropdown.
4. This will ensure that no VAT is calculated or applied to the line items on this invoice.

See the screenshot below for your reference. 

For more insights on how VAT codes work in the system, please see this link: How do I set up sales GST/VAT rates and use them on forms? (International QBO).

Lastly, I'd like to share this reference with you to guide you in utilizing QuickBooks together with its great features: Get started with QuickBooks Online.

I'm just a reply away to assist you if you have any other questions. Take care!