QB Issue Resolution:

Typically, the Exempt – no VAT code is applied for businesses that are exempt. Since special rules apply to such businesses, it’s best to check on HMRC’s website to be 100% sure. Here is the link again: https://www.gov.uk/send-vat-return. 

Resolution for Issue 'Supplier not registered for VAT – which VAT code?' available: Yes (Solved).
Source: Intuit Community forum.

Supplier not registered for VAT – which VAT code?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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