Edit VAT rates

Update VAT rates in QuickBooks Online to make sure you’re collecting the right amount.

What happens when you edit the VAT rate?

Here are a few things you need to know before you edit a VAT rate.

• Changes made to VAT rates will update everywhere except on past transactions. 
• If you create a new transaction using past dates, it uses the new rate. The earlier rate can't be used after editing.
• For recurring templates using the changed rate, new transactions created will use the new rate, but existing transactions with the earlier rate will remain unchanged. You may need to edit recurring templates again to add the updated rate if applicable. 
• Reports will show data for both rates if transactions exist for both in a period.

Edit your VAT rate

1. Follow this link to complete the steps in product
2. Next to Collector General, select the ▼ dropdown, then select the tax agency you want to edit.
3. Select Edit [agency name] ▼ dropdown, then select Edit rates.
4. In the tax rate table, select the rate you want to change and select Edit from the Action column.
   Note: You will not be able to edit any QuickBooks Online default tax rates.
5. In the Edit tax rate window, change the rate. You can also change the name if you like.
6. Select the Effective date, if required, this will be the date from which the rate change will take effect, then select Save.
7. Select On or Off  beside the tax rate you want to make active or inactive.

Note: You'll see "Error: To process this credit card transaction, please enter a credit card number. (code:"INDIRECTTAX-15811")" when trying to edit a tax rate that is being used on a recurring transaction that is setup to auto-charge.

To resolve this error:

1. Create a new tax rate.
2. Edit the recurring transactions to use to the new tax rate.
3. After all recurring transactions are updated to the new tax rate, go to the sales tax settings and make the old tax rate inactive.

Edit a tax agency name

You can edit a tax agency’s name through the Edit VAT settings page using manual VAT only. However, your sales forms will still show the old or initial name you’ve entered. If you would like a different name to show on your sales forms, you'll need to create a new tax agency.

To edit your tax agency's name, follow these steps:

1. Follow this link to complete the steps in product
2. Next to Collector General, select the ▼ dropdown, then select the agency you want to edit.
   Note: You can edit only custom tax agency created by you.
3. Select the Edit [agency name] ▼ dropdown, then select Edit settings.
4. Edit Tax agency name, then select Save.