Create a custom VAT code in QuickBooks

If you need a VAT code that better suits your business—such as one for a local or industry-specific tax—you can create a new one in QuickBooks Online. This is useful if the default VAT codes don’t cover your unique requirements.

Before you begin

• Before you create a new VAT code, make sure VAT is set up in QuickBooks.
• It’s also best to only create VAT codes that are truly exceptional and not already available in QuickBooks.
• If a VAT code already exists but isn’t visible in your account, it may be turned off—you can turn it on instead of creating a new one.
• For industry-specific codes (such as hospitality or holiday accommodation), check the relevant guidance to ensure the correct code is activated.

Create a new VAT code

To create an additional VAT code unique to your company, follow the steps below:

1. Go to Taxes.
2. Select Add Tax.
3. Select the type of tax you want to add.
   Tax rate: Add an individual VAT rate, such as a local tax not already included.
   Group rate: Combine multiple taxes and apply them together. Each tax is tracked separately but charged as one.
   Custom tax: Add a tax agency and percentage for things like environmental levies, hotel, or fuel taxes.
4. Select Save.

Once saved, your new VAT code will be available to use on invoices, bills, and expenses.

What's next?

You might also be interested in:

• Understanding VAT codes in QuickBooks
• Turning off VAT in QuickBooks
• Getting started with VAT in QuickBooks