In VT Transaction+ each analysis account has a VAT scope setting, and the VAT scope of a transaction is based on the accounts it is analysed to.
These settings can be changed by choosing the Set Up>Accounts>All command and then by double clicking on an account and unticking/ticking Entries analysed to this account are normally within the scope of of VAT.
If you change a setting you will be asked if you want all previous transactions changed.
You can also change a transaction with a zero amount of VAT to outside the scope of VAT by right mouse clicking on it in an unsaved VAT return and choosing the Change Transaction To Outside The Scope Of VAT option from the pop-up menu. Once again, you are asked if you want all other transactions to be changed.
It is also possible to change the VAT scope of an individual transaction by right-clicking on it in any report and choosing Edit Transaction from the pop-up menu. In the Edit Transaction dialog the Within the scope of VAT tick box for each analysis entry must be changed.
Most analysis accounts have a default VAT status of being within VAT scope. You can check the VAT status of all accounts by selecting Set Up>Accounts>All:
A common mistake is to assume that a transaction is outside the scope of VAT when it is not. The list of transactions that are outside the scope of VAT per HMRC is quite small. In particular, all supplies that are zero rated, exempt or from unregistered suppliers should be included in your return.
For details of VAT rates for different goods and services, please refer to HMRC guidance here.