Thank you for contacting us, alanmcnamara63.
Let me help you with paying your invoice and VAT in QuickBooks Online.
If the invoice shows that the product you bought is taxable, then select Exclusive of Tax. Thus, you should only pay $1000.
Otherwise, select Inclusive of Tax if the supplier sent you an Ex-VAT invoice. This way, the tax amount will be added to your invoice. Thus, you'll pay $1200.
Please see the attached screenshot for your guidance.
I've added these articles for additional information:
Should you need anything else with submitting your invoice payment, please let me know. I'd be glad to help you out.
This is not working.
When Select inclusive of tax I'm getting error message
Hello Sp Developments, As long as a VAT code and status(inclusive/exclusive it should allow you to save the transaction).Can we ask you to try clearing the cache and cookies on your browser? Do you then get the same message when you sign back in after doing that and create an invoice with a VAT code?
Hello @Sp Developments,
Since you still receive the same error message after following the troubleshooting steps suggested above, I'd recommend contacting our Customer Care Support.
They can pull up you're account, securely, and create a case or ticket ID to be submitted to our engineers for further investigation about this unexpected behavior.
To contact our dedicated support:
Lastly, here's a few articles you can read for ideas about how you can manage your customers and sales transactions: Manage Customers and Income for QuickBooks Online.
If there's anything else that I can help you with, let me know in the comments. I'll be here to lend a helping hand.