How do I set a default tax rate when invoicing?

Signline · ‎May 19, 2022

tried live chat, waste of time, all I want is when I am doing invoices to have a default tax rate already there rather than have to select from the tax dropdown each time, 99% of the time the tax rate is 20% so I just want it there already.

emmam6 · ‎October 12, 2022

Hello Community Users, We just wanted to add some clarification to this thread. If you want to set a default of 20 % for products/services so that on invoices it will auto populate you can do this within the set up of the product/service or by editing the existing ones you set up. To do this go to the cog in the top right and then click on product and services. Hit on edit by the product/service you want to update and scroll down to the VAT box>select the code you want to use>save. This will then auto populate the code when that product/service is used on future invoices. For new products and services you can add the default code within the VAT section when you create the product/service. Any questions feel free to reply back here.

View solution in original post

GeorgiaC · ‎May 19, 2022

Hi Signline, the default tax rate selection can be set within the settings (Cog > Account & Settings > Advanced > Accounting); individual tax codes are then applied within the product/service item (Sales > Products and services > Edit > See VAT field) :woman_technologist:

Signline · ‎June 09, 2022

In the first part '(Cog > Account & Settings > Advanced > Accounting)' it is currently set to exclusive of tax, do I need to change that?

As when I go to 'Sales > Products and services > Edit > See VAT field' there is no 'see VAT field'

Signline · ‎June 09, 2022

tried replying over and over again using MS Edge and keeps saying

Authentication ticket mismatched, failed authentication.
Return to my original page so now had to do it in chrome

GeorgiaC · ‎June 09, 2022

Hi Signline, you can set this to exclusive or inclusive of VAT depending on your business model/preferences - when viewing the product/service information panel (Sales > Products and services > Edit), do you see the option to tick 'inclusive of VAT'?

Signline · ‎June 09, 2022

yes but what I am trying to do is have all products and services preset to 20% vat rather than a dropdown of various vat amounts that we use as 99% of the time whatever we are invoicing is 20% rated for vat and would be easier if didn't have to keep selecting that from the vat dropwdown

emmam6 · ‎October 12, 2022

Hello Community Users, We just wanted to add some clarification to this thread. If you want to set a default of 20 % for products/services so that on invoices it will auto populate you can do this within the set up of the product/service or by editing the existing ones you set up. To do this go to the cog in the top right and then click on product and services. Hit on edit by the product/service you want to update and scroll down to the VAT box>select the code you want to use>save. This will then auto populate the code when that product/service is used on future invoices. For new products and services you can add the default code within the VAT section when you create the product/service. Any questions feel free to reply back here.

Signline · ‎October 20, 2022

Halleluiah.

5 months later, but glad to see we finally have a solution.

Was this option there all along?

GeorgiaC · ‎October 20, 2022

Hi Signline, yes, this was recommended in the initial reply (individual tax codes are then applied within the product/service item (Sales > Products and services > Edit > See VAT field) - apologies if the wording wasn't too clear to follow. :)

Alex Holbrow · ‎May 12, 2024

Is there a way of setting the VAT for all items in products and services in one go rather than setting them all individually?

AdonL · ‎May 12, 2024

I can share some insights about VAT rate settings in QuickBooks Online(QBO), Alex.

Setting a default VAT rate for all items in your products and services at once is currently unavailable in QBO. Knowing this feature would be helpful for you when dealing with numerous items, I recommend sending your thoughts directly to our product developers.

They'll review your request and might consider adding it to future updates. You can also keep track of it by visiting our Customer Feedback page. I'll help you send a product suggestion.

Here's how:

Go to the Gear icon.
Select Feedback.
Enter a brief description of your product suggestion.
Click Next to submit feedback.

Moreover, you can learn how to set up your VAT and calculate how much to tax your customers through this article: Add a VAT to your products and services in QBO.

I've also included these resources below to help you when you record a VAT payment or refund: Recording VAT in QBO.

Don't hesitate to comment below if you have other questions about setting up VAT on your product and services. I'll be around to help.

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How do I set a default tax rate when invoicing?