Apply VAT to invoices and sales forms in QuickBooks

Once you’ve set up VAT in QuickBooks, you can automatically apply the correct rates to your invoices, estimates, sales receipts, and credit notes. This article will show you how to apply VAT to your sales forms.

Apply VAT when creating a sales form

When creating an invoice or sales receipt, QuickBooks helps calculate VAT based on your location and what you’re selling. Here’s how to ensure VAT is applied correctly.

1. Create your invoice or sales receipt as usual.
2. Ensure the Location of sale is correct.
3. If applicable, fill in Shipping to, Ship via, Shipping date, and Tracking no.
4. In the VAT column, make sure the correct rate is applied to each item.
5. If needed, assign VAT categories to your products and services so QuickBooks knows what’s taxable.
6. Select Save and send.

Add VAT to items on invoices, estimates, and credit notes

You can also manually select or update VAT rates for items on any sales form.

1. On the product or service lines, go to the VAT column.
2. Choose the correct VAT rate from the dropdown.
3. You can also click Manage rates to add a new one.
4. Select Save and close.

Note: If you don’t see the VAT column, make sure the Tax feature is turned on in your settings.