GST Tax Code

Thanks for posting in the Community space, T Yosh.

Let me explain how sales tax works in QuickBooks Online (QBO) Singapore.

When you enable the Tax feature, the system will automatically track your sales tax and a default set of GST/VAT codes are created for you. These are the most often used GST/VAT rates where you can add or remove tax rates at any moment.

If you need to update a tax rate, we advise you to create a new tax rate instead of changing an existing one. Since the old rate may have been used on prior transactions changing the rate could affect your sales tax tracking.

In addition, QuickBooks is compliant with Singapore's tax reforms. So, if there are changes in the GST rates, the system will automatically update them.

For more details on how sales tax feature works in QBO, see these articles:

• How do I set up sales GST rates and use them on forms? (International QBO)
• 9% GST rates in QuickBooks Online Singapore

To help you manage your taxes in the future, visit our Community help page for related articles.

If you have any questions, don't hesitate to comment below. I'm always here to lend a hand. Have a great day!

Hi,

Many thanks for your prompt help.

Q1.

You did not answer to my question - I took it that there's no documentation available. I'll ask our accounting firm in Singapore if these 20 x codes make sense, and will get back to you as required.

Q2.

I totally agree that you mentioned:

"If you need need to update a tax rate, we advise you to create a new tax rate instead of changing an existing one. Since the old rate may have been used on prior transactions and changing the rate could affect your sales tax tracking."

This way is how most accounting system follow. I'm surprised that the QB automatically change the tax rate. Please therefore allow me to double check on this - for example, will QB Online change the rate of "SR" from 8% to 9% automatically on 1st Jan 2024?

If yes, I wish to make three more questions:

2-a) Doesn't it make bad effects for the prior transactions as you mentioned?

2-b) What exact time / date the change would be made in background? would it be 00:00  1st Jan 2024?

2-c) Would it be OK If we create custom Tax Code and do not use any of the default 20 x TaxCode? Is there any concerns if we do not use default codes at all?

Many thanks in advance.

Hello, @T Yosh. I appreciate your prompt response and follow-up on this. Let me share additional information regarding sales tax in QuickBooks Online (QBO).

For now, we don't have any information yet about QuickBooks will change the rate automatically from 8% to 9% in January 2024. 

Regarding your question about how changing the rate affects transactions, there's really a possibility that your prior transactions will be affected if you edit the tax rates. This could also affect your sales tax tracking. That said, it would be okay for you to create a custom rate rather than updating or editing an existing one. Using the default codes is not mandatory and it's all up to you if you use it or not.

I've added these articles to learn more about GST tax codes: 

• How do I set up sales GST rates and use them on forms? (International QBO)   
• GST/Tax Exception Detail Report

The Community team is always around if you have further clarifications and QuickBooks concerns. Have a good one.

Hi,

Thanks for this.

I didn't understand:

"we don't have any information yet bout QuickBooks will change the rate automatically from 8% to 9% in January 2024. "

It's not clear for me. The singapore government has announced 7-8%> on 1st Jan 23, and 8->9% on 1st Jan 24, ages ago. Do you mean that you at present, have no plan to change the rate 8->9% on the 2024 new years day dispite the gov's announcement?

Let me ask in a different way. What happened in Jan 2023 when standard rate changed from 7->8% in Jan this year? Did your system automatically changed the rate on the day for example for "SR"? If so what Time / Date exactly you've change?

---

I understand that using custom tax code only is feasible - many thanks for this clear statement.

Regards,

I appreciate you for getting back to us, T Yosh. I can help share some insights about GST  rates in QuickBooks. 

Updating the GST tax rate needs to be done manually. That said, you'll need to create a new tax rate in QuickBooks. Beforehand, please take notice of the following reminders before proceeding:

• Unless you update the transaction and specifically choose a different GST rate, existing transactions that utilized the former rate remain unchanged.
• New transactions made using recurring templates that use the modified component are subject to the new rate. The earlier rate and transactions already completed using the template are unaffected.
• The revised rate will be available for new transactions entered after the Effective Date.
• The old rate applies to any new transactions you initiate that are dated before the designated Effective Date.
• The new rate is applied to new transactions created with dates in the past.

Here's how to create a new GST rate in QuickBooks:

1. Go to Taxes.
2. Select Add tax. 
3. Choose What type of tax you want to add.
4.  Enter all the information needed. 
5. Press Save once done.  

To learn how to pay the sales tax that you owe and update your rates to make sure you collect the right amount, I recommend reading these articles: 

• Edit GST rate
• Why do I see a GST charge for my QuickBooks Online plan?

If you have any further questions about your taxes, please leave a comment below. I'd be happy to assist you once more. Stay safe.

Hi,

I do not think you have understood my question. I haven't been talking about adding a TaxCode or TaxRate object, AT ALL

Let me do in a different way. Can you please kindly simply answer to the following question. It is what you / your system, done in the past, so it should be clear and difinate.

What happened in Jan 2023 when standard rate changed In Singapore from 7->8% in Jan this year? Did your system (QB Online) automatically changed the rate on the day, for example for one of the defualt tax code "SR" ? If so, what Time / Date exactly you changed it? Was it at right after 0:00 a.m. on 1st January 2023?

I hope my point is clear enough.

I'm here to assist you with your inquiry regarding the tax rate change in Singapore that took place in January 2023, @T Yosh.

Based on the record, in line with the recent tax changes in Singapore, we’ve updated our GST rates to remain compliant. From the 1st of March 2023, the following newly updated GST rates will go live in product:

• TX-RE (8%), BL(8%)
• TX-ESS(8%), SR(8%)
• TX(8%), IM(8%)
• DS(8%), TX-N33(8%)
• SRCA-C(8%), TXCA(8%)

Also, I am unable to access real-time or specific data about this matter. Therefore, I cannot supply information about events or changes that occurred in January 2023, such as the standard rate change in Singapore.

You can also review this link to learn more about our newly updated GST rates in QuickBooks Online Singapore: 9% GST rates in QuickBooks Online Singapore.

Additionally, I'll be sharing the following resources to help manage your GST rates in QBO: 

• How do I set up sales GST rates and use them on forms? (International QBO)
• Check how much GST you owe in QBO.

Please feel free to get back in here if you have further questions about GST rates for Singapore. I'll be around to assist you. 

> WILL go live in product:

I guess you are talking about the changes in the past, i.e. sometime in Jan 2023.

I understand with a little surprise that Intuit doesn't have records of what time / date they changed the tax rates for their customers in Singapore.

You can close the ticket.

Best Regards,

I spent nearly an hour figuring out the change from 8% to 9% purchases because it keeps throwing me an error. I remember it was the same when we changed from 7% to 8%. Why is QB making life so hard for us? Instead of chaging the aesthetics every week, why not work on improving the user experience?

I understand the importance of classifying your transactions, Wan.

Upon checking my resources, we have an ongoing investigation about the inability to categorize your bank transaction with an error, An unexpected error occurred while accepting your downloaded transaction. On that note, I recommend contacting our support team. By doing this, they'll get your account information securely and add you as one of the affected users. This way, you will be kept informed about the progress of the investigation in a timely and accurate manner. 

Here's how: 

1. In your QuickBooks Online company, choose (?) Help.
2. Select either tab to get started:

• Assistant: Get quick, personalised answers. Select a suggested option, or type a question or topic you need help with. If you need further help, you can still chat to a human.
• Search: Type a question, keyword, or topic for QuickBooks Online self-help content or select Contact Us, type a question, and Continue. Click Start a chat with a QuickBooks support expert online.

To ensure you'll reach our support team, check out their support hours to determine availability. 

Furthermore, check out these articles to learn more about managing your bank data and use the GST Liability report to see how much sales tax you owe: 

• Exclude a bank transaction you downloaded into QuickBooks Online
• Check how much GST you owe in QuickBooks Online

Rest assured our Product engineers are actively working to resolve this issue. If you have any bank transaction-related concerns, comment below. I'll be here to assist. Keep safe!