Add a VAT category to products and services in QuickBooks Online

Learn how to add a VAT category to your products and services in QuickBooks Online.

Instead of manually calculating VAT, let QuickBooks do the work for you. Add a VAT category to your products and services to accurately calculate how much to tax your customers. Here’s how.

Step 1: Set up your VAT

The rules on how to tax a product or service can change depending on what you sell and where you sell it. QuickBooks keeps track of those tax rules, so you don’t have to.

Here’s how to set up your VAT so QuickBooks can determine the rules that apply to you.

Step 2: Find out what products or services need a VAT category

Important: If you’re still not sure which tax category to assign, ask your accountant for help. They have the best insights into what tax categories your items need. If you don’t have an accountant, we can help find an Accountant near you.

Step 3: Assign a VAT category to a product or service

When you’re ready, here’s how to assign your items to different VAT categories.

1. Go to Sales and select Products & services (Take me there).
2. Look for the item you want to assign a tax category to, then select Edit.
   Note: If you want to assign a tax category to a new product or service, here's how to add a new stock item.
3. Select the VAT▼ dropdown menu, then find and choose the specific VAT that fits your item.
   Complete your item’s info:
   • For a stock item, complete these steps.
   • For a non-stock or service item, follow these steps.
4. Save your item.