If you're creating a transaction (invoice, credit note, expense, bill) and VAT is not available to you, this means that you need to set up your VAT before creating your transaction. Follow the steps below to get started:
  1. On the left hand navigation, click on Taxes.
  2. Click on Set up VAT button.
  3. Here you can select the beginning month of your VAT period and also select the frequency, to when you require your VAT to be filed with HMRC. QuickBooks offers four filing frequencies as below:
    • Monthly
    • Quarterly
    • Half-yearly
    • Yearly
  4. Next, choose your VAT accounting scheme to either Cash or Standard which is the same as accrual. Please note that this must match your accounting basis to realise the VAT income and expenditure on your VAT reporting
  5. Now enter your VAT registration number
  6. Tick the checkbox for Flat Rate Scheme (FRS), if your business is entitled to this and click on Save
Your VAT codes will now be automatically set up.

Now, when you go back to creating your transaction, you'll find the VAT column ready for your use.  .