Hi there,
I want to ensure you can set up and use the VAT feature correctly in QuickBooks Online (QBO).
You can contact the tax agency if the VAT registration number is not associated with your company so they can correct it on their file. Once you have it handy, here's how to set VAT in QBO.
- In the left menu, click Taxes and choose Set up VAT. Or, go to Get things done and select Set up VAT in QuickBooks.
- Select the month you need to start calculating VAT from.
- Choose your filing frequency for VAT.
- Set your accounting method.
- Enter your 9-digit VAT registration number.
- If applicable, tick the Flat Rate Scheme (FRS) box and enter the percentage and tax registration date.
- Select Next.
- Click OK.
After following the steps above, you're now ready to track VAT from customers, assign VAT categories to products and services, check how much tax you owe and submit returns to HMRC. For more details, check out this article: Set up and edit VAT settings, code and rates.
For future reference, here's an article you can check to learn about the list of common VAT codes and how they're used on the sales and purchases forms: VAT code in QuickBooks Online: A complete guide.
If there's anything else I can do for you, let me know by commenting below. I'll be here to answer them for you. Have a great day.
