Hi! How should the VAT be recorded in Quickbooks and company accounts in case we are not a VAT-registered company in UK (under the VAT threshold)? Thanks!

Hi there, susanna-climatec.

Once your company is not a VAT-registered, you'll need to use No VAT code on every transaction to record the VAT in Quickbooks and company accounts. This way, the information tracked won't reflect on your report.

Then, before you can select NO VAT in your transactions, you'll need to turn on the VAT feature first in QuickBooks. Since your company is not a VAT-registered, I recommend using 00000 as the VAT registration number when setting up VAT.

Here's how:

1. Click Taxes at the left panel. Then, select Set up VAT.
2. On the Setup VAT page, select the beginning month of your current VAT period.
3. Select your filing frequency.
4. Next, choose your VAT accounting scheme.
5. Enter your VAT registration number as 000000.
6. If your business is entitled, select the Flat Rate Scheme (FRS) checkbox.​
7. Hit Save.

For additional information, you can click this article: Set up and edit VAT settings, VAT codes, and VAT rates.

Once done you can now enter a transaction with No VAT. Follow the steps below depends on the entry you want to record.

For Expenses:

1. Click on the Plus icon at the top.
2. Select on Expense.
3. Enter the information needed in the transaction.
4. On the VAT section, choose NO VAT as the code. 
5. Hit on Save.

For Invoice:

1. Click on the Plus icon at the top.
2. Select Invoice.
3. Enter the information needed in the transaction.
4. On the VAT section, choose NO VAT as the code. 
5. Hit on Save.

Please check this article to see a table list that contains different common VAT codes: Common VAT Codes.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.