
Set up and manage VAT in QuickBooks
by Intuit•36• Updated 3 weeks ago
Learn how to set up, customise, and manage your VAT settings in QuickBooks Online. QuickBooks can automatically calculate VAT on your invoices and receipts for easy and accurate filings. It lets you know when your tax payment is due, so you can file on time and avoid extra fees or penalties.
This article is for customers who use QuickBooks Online. |
Before you begin
To set up and manage VAT in QuickBooks Online, make sure you have the following information ready:
- Your 9-digit VAT registration number
- Your VAT accounting scheme (Standard or Flat Rate)
- Your VAT filing frequency (monthly, quarterly, or annually)
- Your accounting method (cash or accrual)
Note: If you’re VAT-registered, you must keep digital records and submit your VAT returns through HMRC’s Making Tax Digital (MTD) system. QuickBooks Online supports MTD, but you’ll need to connect your account to HMRC before filing returns. |
Set up VAT in QuickBooks
Update VAT settings
If your business details change, you can update your VAT settings.
Add or edit VAT rates
You can add another tax rate for VAT, like local tax, that isn't already included in QuickBooks.
Show or hide tax rates
If you can't find a specific tax rate in QuickBooks, it might be because it's set to 'inactive' and hidden. Here's how you can easily activate tax codes or hide the ones you no longer need.
Add a group rate or custom tax agency
You have the flexibility to add a group rate, which lets you combine multiple taxes for easier application to transactions. All the taxes you include are calculated and charged simultaneously, but we track them separately for you.
Alternatively, you can create a custom tax agency and define a specific tax percentage for specific purposes. Keep in mind that you can not delete a tax agency once it has been created.
Turn off VAT
If your business is no longer VAT-registered, you can’t delete VAT entirely from QuickBooks, but you can prevent it from being applied to new transactions. Historical VAT data will remain for reference and reporting.
Learn how to turn off VAT in QuickBooks Online.
What's next?
Once you've set up VAT in QuickBooks, learn how to:
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