Hi atki,

You'll want to set up a Non-stock item and make it taxable by following these steps:

1. Click the Gear icon located in the upper right-hand corner.
2. Under List, click Product and Services.
3. Click New, and select Non-stock.
4. Enter the item information.
5. Click Save and Close.

Once done, you can start recording sales transactions such as Invoices or Sales Receipts. Then, select the Product/Service and choose the correct tax from the VAT column.

Feel free to reach out if you have any other questions about QuickBooks. Thanks.