When I try to create a posting, I get the following message Authentication Ticket Mismatched, failed authentication.

We can troubleshoot the issue to determine if the browser is causing problems when creating a posting. I'll provide an article for your reference. 

Concerning your query about why exempt entries appear in VAT Payable, we can verify if your customer is tax-exempt and then determine whether the product you are selling is taxable or non-taxable in the Sales tax category.

Going back to how to delete browser cache and Intuit-specific cookies to quickly fix issues when using QuickBooks Online, open this article: Clear cache and cookies to fix issues when using QuickBooks Online. 

Moving forward, to set up tax-exempt VAT, follow these steps: 

1. Go to the Sales section and select Customers.
2. In the upper-right corner, click on Edit and scroll down.
3. Under Additional Info, check the box that says This customer is tax exempt.
4. Click on the dropdown menu for Reason for exemption.
5. Finally, click Save to apply the changes.  

Additionally, to change and check the Sales tax category from Taxable to Nontaxable, refer to this article: Add product and service items to QuickBooks Online.

We can check out this resource on how the app calculates the correct VAT rate on each sale in QBO: Learn how QuickBooks calculates VAT. 

Consider exporting your data to Microsoft Excel if you need to access it outside QuickBooks for future reference. 

Feel free to return to the Community if you have additional questions about VAT in QBO. We'll offer prompt assistance.

Hi,

thank you for the quick response, In additional information I don't have a checkbos to say the customer is tax exempt

Best Regards,

Noel

Thanks for joining and confirming it on your end, Nleric. Please know that the Tax-exempt checkbox is only available in some QuickBooks Online (QBO) International versions.

As a workaround, we can add the tax-exempt rate when creating customer transactions and then select the rate under the Manage Rates option. 

Here's how:

1. Create a Sales Receipts or Invoice from the (+New) button.
2. Enter your tax-exempt customer name or + Add New from the Customer section.
3. Enter other details like: Term, Invoice Date, Due Date, Item Quantity, Rate, and Amount.
4. Navigate to the click the VAT column, select Manage Rates dropdown, and choose the Exempt (0%) option. 
5. Click the Save and Close once done.

See the Sample illustration below:

Moreover, you'll want to submit your feedback about the Tax-Exempt checkbox for QBO International regions. Our product engineers will review your input and consider including it in future updates, as we are committed to enhancing our product and improving the user experience.

Here's how:
 
1. Go to the Gear icon at the top, then choose Feedback under Profile.
2. Indicate your comments or suggestions.
3. Click Next to submit Feedback.
 

Additionally, we can keep track of your feature recommendations by visiting the QuickBooks Online Feature Requests webpage.
 

For further information on how QuickBooks calculates your VAT and records invoice payments in QBO, please refer to this article:
 

• Learn how QuickBooks calculates VAT
• Record invoice payments in QuickBooks Online
   

If you need additional support with VAT in QuickBooks Online, help is always available. You can enter your comment below for assistance whenever needed.

thank you for your quick response, my initial query was about the fact that when I run the balance sheet, there is a lot of entries in VAT Payable that are clearly marked as Exempt, I was wondering why they are in VAT Payable and how to remove them

Best Regards,

Noel

Transactions that are Exempt from VAT will normally show in the VAT Payable when running a Balance Sheet report, Nleric.

In QuickBooks Online, when you create a transaction such as an invoice and select Exempt from the VAT rates, this transaction will appear in the VAT Payable section with zero amount when generating a Balance Sheet report. This behavior is by design and cannot be modified, as it aligns with the software's intended functionality.

If you prefer not to see these transactions, you can run a VAT Liability report. This report will separate the VAT-exempt transactions from those that have VAT rates. Additionally, you can click on each group with different VAT rates to display the transactions, keeping the VAT-exempt transactions hidden.

Here's how:

1. Go to Reports, then click Standard reports.
   
2. Enter VAT Liability Report on the search bar.
   
3. The report will show you the different VAT rates, including the Exempt Sales (VAT-exempt transactions).
   
4. Select a VAT rate to view all transactions with that rate.
    

Moreover, you can refer to this article for detailed information on how QuickBooks calculates VAT: Learn how QuickBooks calculates VAT.

Additionally, you can assign VAT categories to your products and services to enhance financial accuracy and simplify the tracking of taxable and non-taxable sales.

If you have any further questions regarding VAT-exempt transactions in your reports, please post a reply. We are here and ready to assist you.