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Why do I see a tax charge for my QuickBooks Online subscription?

SOLVED•by QuickBooks•14•Updated 5 days ago

Find out why value-added tax (VAT) is now part of your QuickBooks pricing plan. 

Note: The terminology for VAT may vary based on the location of your company file.

As a result of changes to local tax laws and regulations, Intuit will become a registered entity for VAT in the following countries: 

Bahamas
Bahrain
Bangladesh
Barbados
Chile
Egypt
Iceland
Japan
Kenya
Malaysia
New Zealand
Nigeria
Norway
Saudi Arabia
Singapore
Switzerland
South Korea
Taiwan
Tanzania
Thailand
Turkey
United Arab Emirates
Zimbabwe

This means we are now required to collect VAT on your QuickBooks Online subscription.

VAT charges are collected by Intuit on behalf of the government and as such, should not be considered as a price increase.

For all customers based in the EU

We are required to collect VAT on all QuickBooks Online subscriptions. If you have a sales tax registration, you must complete the following steps for this to be reflected on your invoice: 

  1. Sign in to your QuickBooks Online account.
  2. Select Settings ⚙, then select Account and Settings.
  3. In the Company name section, click the pencil icon ✎.
  4. Enter your Sales tax registration in the Goods and Service Tax ID field.
  5. Click Save

You’ll also be required to enter your VAT number in the Billing and Subscription page. Once you've entered your EU VAT number, you'll be exempted for the VAT charge on the subscription. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From the 10th of April 2023, a 10% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Sales Tax Registration (TIN)

If you have a Sales Tax Registration (TIN), you’ll need to complete these steps to help ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Sales Tax Registration (TIN) in the VAT# field. Note: this field will soon be renamed TIN number.
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From the 7th of March 2024, a 10% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Sales tax registration

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Sales tax registration in the VAT# field
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From the 7th of September 2023, a 15% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Business Identification Number (BIN)

If you have a Business Identification Number (BIN), you’ll need to complete these steps to help ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Business Identification Number (BIN) in the VAT# field. Note: this field will soon be renamed BIN number.
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From the 31st of January 2023, a 17.5% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Sales Tax Registration (TIN)

If you have a Sales Tax Registration (TIN), you’ll need to complete these steps to ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Sales Tax Registration (TIN) in the Tin number field. 
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From April 2024, a 19% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Sales Tax Registration (RUT)

If you have a Unique Sales Tax Registration (RUT), you’ll need to complete these steps to ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Unique Sales Tax Registration (RUT) in the RUT# field.
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From October 2023, a 14% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Sales Tax Registration (TIN)

If you have a Sales Tax Registration (TIN), you’ll need to complete these steps to ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Sales Tax Registration (TIN) in the VAT# field. Note: this field will soon be renamed TIN number. 
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From April 2024, a 24% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Sales tax registration (VAT)

If you have a Sales tax registration (VAT) you’ll need to complete these steps to ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Sales tax registration (VAT) in the VAT# field.
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From the 6th of July, a 10% Consumption Tax (JCT) rate will be added to your next QuickBooks Online bill. If your business is registered for JCT, you may be able to claim this amount when you file your JCT return.

How to update your Japan Consumption Tax (JCT)

If you have a JCT ID, you’ll need to complete these steps to help ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your JCT ID in the JCT# field. 
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor. 

From the 31st of January 2023, a 16% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Personal Identification Number (PIN)

If you have a Personal Identification Number (PIN), you’ll need to complete these steps to ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Personal Identification Number (PIN) in the PIN number field. 
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From the 1st of March 2020, we will be required to collect an 6% SST rate on all QuickBooks Online Subscriptions. If you have a SST registration number, you must complete these steps for it to be reflected on your invoice.

  1. Sign in to your QuickBooks Online account.
  2. Select Settings ⚙, then select Account and Settings.
  3. In the Company name section, click the pencil icon ✎.
  4. Enter your SST Registration Number in the Sales and Service Tax ID field..
  5. Click Save

If entered, SST charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From the 24th of July 2023, a 15% Goods and Services (GST) rate will be added to your next QuickBooks Online bill. If your business is registered for GST, you may be able to claim this amount when you file your GST return.

How to update your IRD number

If you have a IRD number, you’ll need to complete these steps to ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Customer IRD number in the Customer IRD number# field.
  5. Click Save

If entered, GST charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From the 4th of April 2023, a 7.5% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Sales Tax Registration (TIN)

If you have a Sales Tax Registration (TIN), you’ll need to complete these steps to ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Sales Tax Registration (TIN) in the VAT# field. Note: this field will soon be renamed TIN number. 
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From April 2024, a 25% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Sales tax registration (VAT)

If you have a Sales tax registration (VAT) you’ll need to complete these steps to ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Sales tax registration (VAT) in the VAT# field.
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

For customers in Saudi Arabia

From 1 July 2020, the value-added tax (VAT) rate applicable to your QuickBooks Online subscription will rise from 5% to 15%.

What should I do if I’m a customer in Saudi Arabia?

If you have a VAT registration certificate, you'll need to take action to ensure your VAT Account Number is reflected on your invoice.

To do this:

  1. Sign in to your QuickBooks Online account.
  2. Select the gear icon, and then Account and Settings
  3. In the Company name section, click the pencil icon
  4. Enter your VAT Account Number in the VAT TIN field.
  5. Click Save

When your VAT Account Number is successfully verified, you won't be charged VAT on your QuickBooks Online subscription. If applicable, VAT charges will appear as a separate line item on your invoice. It will be your responsibility to self-assess whether you need to pay VAT for the use of our services.

If your VAT Account Number can't be verified and you determine you need to self-assess VAT on your QuickBooks Online subscription, we encourage you to consult a tax advisor for assistance.

From the 1st of January 2024, we will be required to collect a 9% GST rate on all QuickBooks Online Subscriptions. If you have a Sales tax registration, you must complete these steps for it to be reflected on your invoice.

  1. Sign in to your QuickBooks Online account.
  2. Select Settings ⚙, then select Account and Settings.
  3. In the Company name section, click the pencil icon ✎.
  4. Enter your Sales tax registration in the Goods and Service Tax ID field.
  5. Click Save

If entered, GST charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

If you are a non-business customer, from April 2024, a 10% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If you enter a valid Business Identification number (BIN) in your QuickBooks Online subscription account, you won’t be charged VAT by Intuit. To do this, please refer to the steps below.

How to update your Business Identification number (BIN)
If you have a Business Identification number (BIN), you’ll need to complete these steps to help ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Business Identification number (BIN), in the BIN# field.
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From the 28th of April 2023, a 7.7% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Value-added Tax Number (VAT)

If you have a VAT ID, you’ll need to complete these steps to help ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your VAT ID in the VAT# field. 
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor. 

If you are a non-business customer, from the 13th of December 2023, a 5% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If you enter a valid Business Identification number (BIN) in your QuickBooks Online subscription account, you won’t be charged VAT by Intuit. To do this, please refer to the steps below.

How to update your Business Identification number (BIN)
If you have a Business Identification number (BIN), you’ll need to complete these steps to help ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Business Identification number (BIN), in the VAT# field. Note: this field will soon be renamed BIN number.
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

If you are a non-business customer, from the 13th of December 2023, a 18% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If you enter a valid Sales Tax Registration (TIN) in your QuickBooks Online subscription account, you won’t be charged VAT by Intuit. To do this, please refer to the steps below.

How to update your Sales Tax Registration (TIN)
If you have a Sales Tax Registration (TIN), you’ll need to complete these steps to help ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Sales Tax Registration (TIN) in the VAT# field. Note: this field will soon be renamed TIN number.
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

If you are a non-business customer, from the 7th of December 2023, a 7% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If you enter a valid Sales Tax Registration in your QuickBooks Online subscription account, you won’t be charged VAT by Intuit. To do this, please refer to the steps below.
How to update your Sales Tax Registration (TIN)
If you have a Sales Tax Registration (TIN), you’ll need to complete these steps to help ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Sales Tax Registration (TIN) in the VAT# field. Note: this field will soon be renamed TIN number.
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

From the 24th of July 2023, an 18% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.

How to update your Sales Tax Registration (TIN)

If you have a Sales Tax Registration (TIN), you’ll need to complete these steps to ensure your QuickBooks Online invoice is up-to-date:

  1. Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Sales Tax Registration (TIN) in the VAT# field. Note: this field will soon be renamed TIN number. 
  5. Click Save

If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

The VAT rate applicable to your QuickBooks subscription is 5%. If you have a Sales Tax Registration (TRN) you'll need to take action to ensure your TRN is reflected on your invoice.

How do I enter my VAT/TRN Registration Number in QuickBooks Online?

If you have a TRN or Sales tax registration, you’ll need to complete these steps for your TRN or Sales tax registration to be reflected on your invoice.

  1. Sign in to your QuickBooks Online account.
  2. Select the Settings ⚙, and then Account and Settings
  3. In the Company name section, click the pencil icon ✎
  4. Enter your VAT Account Number in the VAT TIN field.
  5. Click Save

From the 8th of July 2023, a 14.5% value-added tax (VAT) rate will be added to your next QuickBooks Online bill. If your business is registered for VAT, you may be able to claim this amount when you file your VAT return.
How to update your Business Partner Number (BPN)
 If you have a Business Partner Number (BPN), you’ll need to complete these steps to ensure your QuickBooks Online invoice is up-to-date:

  1.  Sign in to your QuickBooks Online account
  2. Select the gear icon, then Account and Settings
  3. In the Company name section, select the pencil icon
  4. Enter your Business Partner Number (BPN) in the VAT# field. Note: this field will soon be renamed BPN Number
  5. Click Save

 If entered, VAT charges will begin to appear as a separate line item on your invoice. Intuit is unable to provide tax advice. For assistance with taxes, we encourage you to consult a tax advisor.

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