Learn how to edit VAT rates in QuickBooks Online.
The amount of VAT you collect may increase or decrease. Update your VAT rates to make sure you collect the right amount. Here’s how.
What happens when you edit VAT rate
Here are a few things you need to know before you edit a VAT rate.
- Changes you make will update the rates everywhere except for any in past transactions.
- Existing transactions that used the earlier rate remain unchanged unless you edit the transaction and specifically select a different VAT rate.
- If you create a new transaction but use dates in the past, the transaction uses the new rate.
- After you edit a rate, the earlier rate can no longer be used.
- For recurring templates that use the changed component, new transactions created with the template use the new rate. Existing transactions created with the template and the earlier rate remain unchanged.
- If you edit a tax rate you use on a template, you'll need to edit your template again to add the updated tax rate.
- Reports show the data for both rates (before and after) if there are transactions for both rates in a particular period.
To edit VAT rates:
- Go to VAT.
- In the top right-hand corner, select Edit VAT and then Edit rates.
- In the tax rate table, choose the rate you want to change and select Edit. Note: You will not be able to edit any QuickBooks Online default tax rates.
- In the Edit tax rate window, change the rate. You can also change the name if you like.
- Set the Effective date, if required, this will be the date from which the rate change will take effect, then Save.
- Select On or Off beside the tax rate you want to make active or inactive.
- To confirm your changes, select Yes.