How do i setup quickbooks to deal with VAT for five EU marketplaces?

BigTee · ‎April 22, 2019

JaneD · ‎April 22, 2019

It's good to see you here again, BigTee.

I'm here to address your VAT concern.

You'll have to create five Cash on Hand accounts in the Chart of Accounts since QuickBooks Online (QBO) is designed to deal with one currency. Just make sure to use a VAT code for EU VAT codes when entering transactions.

Here's how to set up an account:

Click on the Gear icon and choose Chart of Accounts.
Select New.
Choose Cash at bank and in hand as the Account Type.
Select Cash on hand as the Detail Type.
Enter the name of the account.
Click on Save and Close.

For more in-depth information about VAT in QBO, you can refer to this article: Common VAT Codes.

That should do it. Leave a message below if you have further questions. I'm always here to help.

View solution in original post

JaneD · ‎April 22, 2019

It's good to see you here again, BigTee.

I'm here to address your VAT concern.

You'll have to create five Cash on Hand accounts in the Chart of Accounts since QuickBooks Online (QBO) is designed to deal with one currency. Just make sure to use a VAT code for EU VAT codes when entering transactions.

Here's how to set up an account:

Click on the Gear icon and choose Chart of Accounts.
Select New.
Choose Cash at bank and in hand as the Account Type.
Select Cash on hand as the Detail Type.
Enter the name of the account.
Click on Save and Close.

For more in-depth information about VAT in QBO, you can refer to this article: Common VAT Codes.

That should do it. Leave a message below if you have further questions. I'm always here to help.

BigTee · ‎April 23, 2019

Hi JaneD

Thanks for the prompt reply.

When setting up the accounts in Chart of Accounts do I select "Euro" as the currency?

And what "Default VAT Code" do I choose?

As you know A2X will post the Amazon settlements to the Journal. As I understand it I locate the relevant settlement in the Journal and then "Save & Close" it. I then go to the newly created "Cash on Hand" account for the corresponding country, locate the Journal and select "Match", is that correct?

Thanks

BigTee · ‎April 24, 2019

Hi JaneD

Are you available to answer my last query please?

Regards

BigTee · ‎April 24, 2019

Hi JaneD

Are you able to answer my last post please.

Regards

JaneD · ‎April 24, 2019

Hi BigTee,

I made some replications on this. To answer your concern, there is no need to enter the default VAT code since it won't matter when importing or downloading transactions. Just set the account to EUR currency if it is in EUR.

On the other hand, you can just Match the transaction since QBO offers smart suggestions. If QBO is unable to find a match, you can click on the Find Match.

Here's a great article for more in-depth information: Add and match downloaded banking transactions.

This should point you in the right direction. Please let me know if you have additional questions. I'll be around.

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How do i setup quickbooks to deal with VAT for five EU marketplaces?