QuickBooksHelpIntuitAdd VAT categories to products and services in QuickBooks
by Intuit•9• Updated 1 month ago
Learn how to assign VAT categories to your products and services so QuickBooks Online can calculate the correct VAT for your customers automatically.
Step 1: Set up VAT in QuickBooks
Before assigning VAT categories, make sure VAT is set up. This allows QuickBooks to track and apply the correct tax rules based on what and where you sell.
Step 2: Identify the right VAT category
Not sure which VAT category applies to an item? Speak with your accountant or find an accountant near you.
Step 3: Assign a VAT category to a product or service
To assign a VAT category to an existing item:
- Go to All apps
, select Sales & Get Paid, then select Products & services (Take me there). - Look for the item you want to assign a VAT category to, then select Edit.
- Select the Sales tax â–Ľ dropdown, then find and select the specific VAT that fits your item.Â
- Complete your item’s info:
- For a stock item, complete these steps.
- For a non-stock or service item, follow these steps.
- Select Save.
| Tip: To assign a VAT category to a new item, learn how to add a stock or service item. |
Notes:
- If you see the error “Error when saving or confirming VAT category - "item name" couldn't be categorised." while saving, check your default sales item setup.
- This error occurs when the default sales item maps to an incorrect income account.
- For stock products, assign an income account with the following:
- Account type: Income
- Detail type: Sales of Product Income