I often hear shouted from another room a question along the lines of “Is it No VAT if I’m
doing a PO for someone who’s not VAT registered”, usually signifying my Husband is
working
from home and has forgotten the difference between 0% & No VAT entries on
QuickBooks.
He’s probably not alone, as they produce the same result for him when using either when
raising a PO or processing his expenses, but they do make a difference further down the
line, as using the wrong one can make things appear on a VAT return when they shouldn’t
or
the opposite, so it is important to get it right! Plus it makes life easier for your
bookkeeper if you get it right first time, which will keep them happy!
Essentially, 0% is for zero rated items like most food & postage, plus suppliers that
could charge VAT on their services if they were VAT registered, but currently aren’t. No
VAT
is for tax payments & wages. Simple as that. And now I’ve written this blog my
husband
can look at this rather than shouting through the house for help!
