Creating new Invoices

Hi there, Sam124.

Yes, it is possible to automatically generate a 20% VAT on each item without having to select the VAT rate from the dropdown list in the invoice. To do this, you'll need to go to the Products and Services page. From there, you can edit or create an item and make sure to assign a VAT rate. This way, it will automatically show on the invoice when you select the item.

Here's how:

1. Go to the Gear icon at the top. Then, select Products and Services.
2. In the Products and Services window, select New.
3. Choose the product or service type.
4. Add a name. If you track SKUs, enter an SKU for the product.
5. From the Category dropdown, select the category that best describes your product or service.
6. Select the I sell this product/service to my customers checkbox. If you don't sell the item, you can leave it unchecked.
7. In the Sales information section, enter a description. This is what your customers will see on their sales form.
8. Enter an amount in the Sales price/rate field and select the Income account ▼ dropdown and the account you want to use to track the sale.
9. Choose the 20% VAT rate in the Tax drop-down list.
10. Fill in the other necessary field. Then, hit Save and close.

For additional information, you can click this article: Add product and service items to QuickBooks Online.

Once done, you can now create an invoice and choose the items you've created that has a VAT rate assigned already. I've attached a screenshot below for visual reference.

Please refer to the articles below on how you can set up an additional tax rate, group rate, or custom tax for your company. And, view a table that contains different VAT codes.

• Set up and edit VAT settings, VAT codes, and VAT rates.
• Common VAT Codes.

Feel free to comment below if you have more questions. I'm always happy to assist. Take care!