Allow me to join the thread, @Catherine Pearce. Let me share with you some ideas about VAT and categories in QuickBooks Online.

The category and rate would depend on how the transaction affects the returns.

You can check out this article for more details about QuickBooks VAT codes. The article can help you choose what code to apply and shows further information within the specific code you use.

I also suggest you consult your accountant for further assistance.

For future reference, you can utilize this article to edit a VAT payment or refund and check your filing status.

Let me know if you need further assistance with your sales taxes by dropping a comment below. Have a great day!