when reconciling the bank transactions .

Hello @nikki26,

There are several VAT codes you can use in posting an income depending on the treatment of your transactions. Let me share them so you can decide which code to use.

To start with, here are the most common codes used for most scenarios when a customer doesn't know what to choose:

• 20.0% S- Standard VAT Rate
• 5.0% R - Reduced VAT Rate
• 0.00% Z - Zero VAT Rate
• Exempt and No VAT

For the detailed instruction about how these codes will be posted on your return as you review your transaction, you can use this article for guidance: List of the Common VAT Codes.

On top of that, I've also included this reference for the steps once you need to prepare and submit your return: Submit a VAT return in QuickBooks Online.

If there's anything else that I can help you with, please let me know in the comments below. I'll be here to lend a hand.