Hi QB

I am compiling my first VAT return using QB online - (I am also parallel running using Excel just to verify).  All VAT boxes appear to be correct, with the exception of Box 7 "Net value of purchases".  

This box includes items I have allocated the "No VAT" vat code against, such as payroll, PAYE and NI payments, and dividends - all of which should not be included in Box 7 (as per the HMRC web site).  All these payments have been included in QB via the banking down load, where I have chosen the VAT code "No VAT".  

I assumed that when choosing "No VAT" then these items would not appear on the VAT return.  

What should I have done to exclude these items from the VAT return? 

Should I be using a different VAT code, or perhaps no VAT code at all? 

or is there a check-box which will allow these items to be excluded ?

Any help would be appreciated.  

Thanks QB

Jon 1