Let's go to the Taxes menu to change the VAT to 5% for hospitality, @stockdining.
Here's how:
- Select VAT from the Taxes panel.
- Choose Edit rates from the Edit VAT drop-down list.
- Locate the VAT for hospitality.
- Click Edit from the Action column.
- Change the percentage to 5%, set the Effective date, and review the Rate history.
- Select Save.
The screenshots below show you the steps. For the detailed instructions, check out this article: Set Up And Edit VAT Settings, Codes, And Rates.
![ChangeTheVATRateForHospitality1.PNG ChangeTheVATRateForHospitality1.PNG](https://quickbooks.intuit.com/learn-support/image/serverpage/image-id/52450iD0844E2D45558512/image-size/large?v=v2&px=999)
![ChangeTheVATRateForHospitality2.PNG ChangeTheVATRateForHospitality2.PNG](https://quickbooks.intuit.com/learn-support/image/serverpage/image-id/52451i66BBBC2FD4BA2A68/image-size/large?v=v2&px=999)
Once done, you can now apply the new rate to your transactions. Here's what it looks like:
![ApplyVATForHospitalityToATransaction.PNG ApplyVATForHospitalityToATransaction.PNG](https://quickbooks.intuit.com/learn-support/image/serverpage/image-id/52452i6A0BCCC6B2C626BB/image-size/large?v=v2&px=999)
Lastly, I recommend running the VAT Detail and Recent Transactions reports from the Reports menu. These will help you ensure the transactions you've created are allocated into the correct box when filing your return.
I'll lend a helping hand if you need anything else. Take care always.