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Hi there, Kudzie. I'm here to provide further details about the enable VAT functionality.
In QuickBooks Online, once you enable the VAT feature in QuickBooks, it becomes a permanent part of your account and cannot be turned off again. Therefore, it is essential to carefully consider whether you want to enable this feature before doing so.
To set up your VAT, you will need to follow a few simple steps. Let's ensure you enter the correct information for your business. This may include your VAT registration number, the VAT rates applicable to your products or services, and other relevant information.
Here's how:
- In QuickBooks, go to Taxes and select VAT.
Or, go to Get things done and select Set up VAT in QuickBooks. - Choose the month you need to start calculating VAT from.
- Select your filing frequency for VAT. This is how often you will submit VAT returns to HMRC.
- Tap your accounting method.
- Select Standard (also known as accrual) if you record income and expenses when you send the invoice or receive the bill, regardless if the invoice or bill was paid or not.
- Select Cash if you record income and expenses at the time you receive the payment or pay the bill.
- Enter your 9-digit VAT registration number.
- If applicable, tick the Flat Rate Scheme (FRS) box and enter the percentage and tax registration date.
- Click Next and then OK.
I'll add this article for additional info: Set up and edit VAT settings, codes, and rates in QuickBooks Online.
However, If you're using QuickBooks Desktop, it's important to note that QBDT has already been discontinued. This means that QuickBooks Desktop is not a compliant solution for Making Tax Digital (MTD). From 7th April 2024, HMRC will no longer accept MTD submissions through QuickBooks Desktop 2016 or any newer versions. If you want to learn more about the QBDT discontinuation and what steps to take after your subscription has ended, please refer to this article for more information: QuickBooks Desktop discontinuation support.
Please know you can continue to reach me here with any additional questions you may have. Thanks for coming to the Community, wishing you continued success. Have a great day!
