For information about the new VAT rate changes for the hospitality, holiday accommodation and attractions industry, read this.
To create a new VAT rate:
- In QuickBooks Desktop, select VAT from the top menu.
- Select Manage VAT.
- Click Add a new VAT rate and hit Next.
- Select the appropriate VAT Agency and hit Next.
- Enter the appropriate name 12.5 HTR, then click Next.
- Enter 12.5 in the rates field.
- Select the last option <1, 6> VAT on Sales, Net Sales. Click Next.
- Enter 12.5 in the rates field.
- Select the last option <4, 7> VAT on Purchases, Net Purchases. Click Next.
- Assign a VAT code (for example, HTR), and hit Next.
- Review the summary and once you're happy with your changes, select Finish.
Check out this article if you want to learn more about the different types of VAT codes.