I've been using QB since 2001, but recently, partly as a result of trying to move to QB Online, I've been having a lot of difficulty in getting VAT coding right. For various reasons, I've now given up trying to migrate to QB Online and instead am in QB Desktop Pro 2017. Because we've been using the tool for so long, and over the years have gathered a lot of cruft in terms of VAT items and codes, I thought I'd take a look at how a newly created company file gets created in terms of VAT bits and pieces. It raises a few questions that maybe someone can answer. All of these are in the context of a brand new company file, just set up with Standard Scheme VAT:
Are the default codes (i.e. those produced by QuickBooks on creating a new company) correct?
thx.
Solved! Go to Solution.
Default vat codes are set up during your initial set up of the company and its type.
From edit preferences you can turn on or off the tracking of vat and the defaults are loaded.
Best setting to start with are to leave it all alone. DO NOT choose to use supplier or Customer Vat codes and select the option for rounding as Both. Make sure you do not have any suppliers or customers set up with vat codes as well.
This then allows the Vat code set on the items in your item list to control vat as they are entered into the form.
as to the questions asked.
1 N code a taxable code as you still have to charge vat on sales to non registered customers and for non registered suppliers you still need to record you purchases in box 7.
2 E similar to N as the purchase Or sales has to be posted to the correct boxes
Default vat codes are set up during your initial set up of the company and its type.
From edit preferences you can turn on or off the tracking of vat and the defaults are loaded.
Best setting to start with are to leave it all alone. DO NOT choose to use supplier or Customer Vat codes and select the option for rounding as Both. Make sure you do not have any suppliers or customers set up with vat codes as well.
This then allows the Vat code set on the items in your item list to control vat as they are entered into the form.
as to the questions asked.
1 N code a taxable code as you still have to charge vat on sales to non registered customers and for non registered suppliers you still need to record you purchases in box 7.
2 E similar to N as the purchase Or sales has to be posted to the correct boxes
Hi TKP,
Yes, those are defaut codes, and you can modify it the way your business works.
You can edit code details, rate and for the boxes to be affected & even the Tax Agency.
You can also use the F1 or in product help under the Help Menu for details or the preset codes.
You can also contact our support team for details at 0808 168 9535.
QuickBooks Support