QuickBooks HelpQuickBooksHelpIntuit

Edit VAT rate in QuickBooks Online

SOLVEDby QuickBooksQuickBooks Online33Updated 6 days ago

Did you get a notice that your VAT rate is changing and you are using custom tax rates in QuickBooks Online? Here's how to update them:

To edit VAT rates:

  1. Go to Taxes and select VAT (Take me there). Then, select the required tax from the options. If you have multiple tax agencies, in the top-left ensure that the correct tax agency is selected.
  2. In the top right-hand corner next to Add tax, select the Edit dropdown then Edit rates.
  3. In the tax rate table, choose the rate you want to change and select Edit.
  4. In the Edit tax rate window, change the rate. You can also change the name if you like.
  5. Set the Effective date, if required, this will be the date from which the rate change will take effect.
  6. Select Save.
  7. Select On or Off beside the tax rate you want to make active or inactive.
  8. To confirm your changes select Save.

What happens when you edit VAT rate

  • When you edit a rate, you must set an effective date i.e date from which the new rate must be effective.
  • The new rate will be available for new transactions entered after the Effective date.
  • If you create a new transaction dated before the set Effective date, the transaction uses the old rate.
  • If you don't set an Effective date while editing a rate the earlier rate can no longer be used even for past dated transactions.
  • Existing transactions that used the earlier rate remain unchanged unless you edit the transaction and specifically select a different VAT rate.
  • The new rate is available for new transactions only.
  • 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.
  • Existing transactions that used the earlier rate remain unchanged unless you edit the transaction and specifically select a different tax rate.
  • 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.
  • Reports show the data for both rates (before and after) if there are transactions for both the rates in a particular period.

Was this helpful?

You must sign in to vote, reply, or post

Sign in for the best experience

Ask questions, get answers, and join our large community of QuickBooks users.

More like this