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How do I set up sales GST rates and use them on forms? (International QBO)

by Intuit Updated 5 months ago

QuickBooks Online can automatically track your sales tax for you through the Tax feature. To use the tax feature, you need to first turn it on and then create your tax codes as necessary.

If you are using QuickBooks Online in Ireland, Mexico, Malaysia, Singapore, United Arab Emirates or South Africa, a default set of GST/VAT codes are created for you automatically. These represent the most commonly-used GST/VAT rates and you can add additional tax rates or deactivate tax rates at any time.

In some countries, QuickBooks Online offers customers the ability to select from a list of commonly-used (VAT/GST/GCT/IVA/ITBIS/TOT) rates. These rates are provided for informational purposes, are not tax or accounting advice, and we recommend you consult your own tax or accounting advisors regarding the applicability of these rates. In addition, you can add and Deactivate tax rates. If you do not see a list of tax rates, these instructions can help you create the ones you need.

Turn on tax tracking

  1. Go to Taxes , and select Set up tax.
  2. Set up the tax agency details such as the name of your tax agency, any official tax number that has been assigned to your company, your reporting method, how often you file your tax to your tax agency, and whether this tax is meant for sales or purchases, then select Next.
  3. Follow the steps to finish the setup and select Ok.

Once sales tax is set up, you'll see the Tax Centre. Also, you'll see a GST column on your sales and purchases forms.

Add tax rates

If you are in Ireland, Mexico, Malaysia, Singapore, United Arab Emirates, or South Africa, QuickBooks Online automatically creates default tax rates for you.

You can also create additional tax rates at any time.

Important: If you need to change a tax rate, we recommend you create a new tax rate instead of updating an existing one because the existing rate may have been used on prior transactions and changing the rate could affect your sales tax tracking.

  1. In the Tax Centre, select Add tax.
  2. Choose which type of tax rate you want to set up.
  3. Enter the details of your tax rate.
  4. Select Save when finished.

Deactivate tax rates

In some countries, QuickBooks Online offers customers the ability to select from a list of commonly-used VAT/GST rates. If there is a tax rate you feel is not applicable to you, you can always deactivate it. If you create an additional tax rate and later decide it no longer applies, you can deactivate it anytime.

Please note that once a rate has been created, you cannot delete the rate. If you need to change that rate, deactivate the rate and then create a new one.

  1. In the Tax Centre, use the side arrows to find the tax you want to deactivate.
  2. Select Edit VAT in the top right corner.
  3. Select Edit rates.
  4. Select the green toggle option.
  5. For custom rates - Under Action, click Edit and then click Make inactive.

Important: Please note that you can't have two rates with the same name. To solve this, rename the deactivated rate something else. Then, make a new tax rate with the correct name.

Add group tax

Important: Group tax, once created, cannot be edited or deleted.

  1. In the Tax Centre, select Add Tax.
  2. Select Group rate.
  3. Enter the Group name and Description.
  4. Select the Tax Rate and where it applies to Net amount, Tax amaount, or both.
  5. Select Save.
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