When matching an invoice with a bank lodgement, its asking for a VAT code, what do I select?

Thanks for visiting the QuickBooks forum today, @marcella-tonymoh,

If this deposit is subject to VAT, then you must select the code that corresponds to how it should be reported on your returns. Otherwise, if these are exempt, you can select the option called No VAT (0% Purchases) for expenses and No VAT (0% Sales) for income deposits.

QuickBooks Online will require these codes when adding transactions from the bank. Assigning the correct codes will ensure your VAT returns are accurate.

If you need help with the right codes to use, reach out to an accounting professional in your location. They provide tax advice to help you report the transactions correctly when filing VAT returns.

If you need anything else, please let me know in the comment below. Have a lovely day!