UK VAT Codes in QuickBooks: a Bookkeeper's Reference (Free CSV)

QuickBooks Online ships with its own set of UK VAT codes, named differently from other software, and picking the right one is where bookkeeping goes wrong, because the correct code follows the supply, not the account. This reference lists every UK VAT code as QuickBooks names it, with its rate, when to use it, and what it does to the return.

The download is a single sheet: the QuickBooks VAT code, its rate, its type, what it applies to, and its effect on the VAT return.

The codes QuickBooks gives you

• 20.0% S: the standard rate, used for both sales and purchases.
• 5.0% R: the reduced rate, mainly domestic fuel and power.
• 0.0% Z: zero-rated, on most food, books, children’s clothing, and public transport.
• Exempt: no VAT, on insurance, financial services, and residential rent. Blocks input VAT recovery.
• No VAT: outside the scope, for wages, dividends, and blocked client entertainment.
• 20.0% RC SG: the reverse charge for B2B services bought from overseas.
• 20.0% RC CIS (and 5.0% RC CIS): the reverse charge for construction subcontractor work under CIS.

One standard code, not two

Unlike some software, QuickBooks uses a single 20.0% S code for both sales and purchases and determines the direction from the transaction type. So you do not pick an income or expenses variant, you use 20.0% S on a sale and on a purchase alike, and QuickBooks routes it to the right box of the return. This is a small but real difference when you move between platforms.

The three that catch people out

1. Exempt is not zero-rated. Both show no VAT, but Exempt blocks input VAT recovery and behaves differently on the return. Code insurance and bank charges as Exempt, not 0.0% Z.
2. No VAT is not Exempt. No VAT is outside the scope and left off the return (wages, transfers). Exempt is on the return. Not interchangeable.
3. Two reverse charges. Overseas B2B services use 20.0% RC SG; construction subcontractor work uses 20.0% RC CIS. Separate codes for separate situations, and the CIS codes only apply from 1 March 2021.

The code is a default that prefills the line

QuickBooks lets you assign a default VAT code to each chart-of-accounts account, in bulk, and that default prefills the transaction line. You can override the code on any line when a transaction needs a different treatment. So the account code is a sensible starting point, not a lock, which is why a good chart pairs a default with the allowed alternatives. Note that the chart-of-accounts import does not carry VAT codes, so you assign them after importing the structure.

How to use the reference

1. Find the nature of the supply, not just the account.
2. Match it to the QuickBooks code, remembering 20.0% S covers both directions.
3. For overseas services use 20.0% RC SG; for construction subcontractors use 20.0% RC CIS.
4. Pair this with the UK chart of accounts for QuickBooks, whose CSV maps each account to its code for bulk-assigning.

Getting codes right on every transaction by hand is exactly the work software removes. ExpenseFlow reads each receipt and bill, applies the correct QuickBooks VAT code for the supply including the exempt and reverse-charge cases, and posts it into QuickBooks Online with the source attached, so the code is right at capture. Dext and Hubdoc also extract VAT from documents as they arrive.

One more difference worth knowing when you move files between platforms: QuickBooks also carries EU codes (such as 20.0% ECG and ECS for intra-EU goods and services) and postponed import VAT codes (20.0% PVAT), which matter for businesses importing goods. Match the code to the actual supply rather than copying whatever the previous system used.

On Xero? See the UK VAT codes in Xero reference.