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user76637
Level 1

Hello. Why QB has 2 VAT rates relating to transactions outside of VAT scope. They are "No VAT" and "OOS". What is the difference between OOS and No VAT tax rate in QB?

 
1 Comment 1
ReymondO
QuickBooks Team

Hello. Why QB has 2 VAT rates relating to transactions outside of VAT scope. They are "No VAT" and "OOS". What is the difference between OOS and No VAT tax rate in QB?

Thanks for contacting our Community, @user76637.

 

I'd be glad to share with you the difference between these two VAT codes in QuickBooks Online (QBO).

 

OOS refers to the Out of Scope VAT code which is typically associated with QuickBooks Desktop and other countries for QBO products. Though, this code and the No VAT code are both the same. 

 

You can designate these two for goods and services that are outside the scoop of VAT and not reported on the VAT return. This includes anything you:

 

  • Sell (or otherwise supply) but not as part of your business – for example, if you occasionally receive income from sources such as leisure activities or hobbies.
  • Buy and sell for your own personal use, such as a hobby.
  • Sell (or otherwise supply) when you're not registered for VAT – and you don't need to be registered.
  • Buy or sell outside the European Union (EU).
  • Tolls for bridges, tunnels, and roads operated by public authorities.
  • Low-cost welfare services provided by charities.
  • Donations to charity freely given by a business where the giver does not receive anything in return.
  • Statutory fees and services – for example, MOT testing, congestion charge.

 

In addition, you can add and Deactivate tax rates in QuickBooks. If you don't see them on your tax list, these instructions can help you create the ones you need: How do I set up sales GST/VAT rates and use them on forms?

 

Let me know if you have any other queries. I'll happy to answer them for you.