I have bank entries resulting from customer payments. How do I enter the VAT component of each payment manually as it doesn't correspond to a standard rate

saul2 · ‎July 27, 2019

Anonymous · ‎July 27, 2019

Hello, saul2.

Creating an adjustable VAT rate is currently unavailable in QuickBooks Online. The VAT rates available in QuickBooks are the ones mandated by HMRC. You might want to consult your accountant about the proper way of handling this type of situation. Also, reaching out to HMRC would be ideal as well.

Please comment down below or post a question again if you need anything else.

saul2 · ‎July 28, 2019

Thank you for answering, but it doesn't help. 1) the VAT rate for my transactions are not standard - they do not correspond to 0, 5 or 20% 2) because each transaction is made up of a variable basket of goods with different VAT rates 3 I therefore need to enter a different VAT amount, and total for each sale, which doesn't correspond to a standard rate. How do I do this?

Ryan_M · ‎July 28, 2019

Hi @saul2,

It appears that you're looking to enter custom VAT rates for your transactions. Let me help you out by sharing the steps on how to enter it in QuickBooks Online (QBO).

Here's how:

Go to the Taxes tab.
Click the Edit VAT drop-down menu then select Edit rates.
Select the Add tax rate button and fill-up the form as necessary.

Repeat the steps above as many times as needed, if you want to use different custom VAT rates. At this point, you can start to enter your custom VAT rates to its corresponding transactions.

Should you wish to disable VAT rates you no longer use, you can find the steps in this article: Remove a VAT rate.

I'd be glad to provide assistance whenever needed. Leave your questions in the comments below, if you have any, and I'll get back to you.

saul2 · ‎July 28, 2019

No that's not a solution. We have hundreds of transactions each one with a different effective VAT rate. We cannot create a rate for each transaction. The rate type needs to be set as "Mixed" or "Variable" in some way, and the transactions imported via CSV.

PreciousB · ‎July 28, 2019

Thanks for coming back to the Community, saul2.

The VAT codes listed in QuickBooks is defaulted based on HMRC's tax code system. Currently, we are unable to enter variable VAT.

I recommend adding a custom tax and following the workaround shared by my colleague MikiD. I'll show you how:

Go to the Taxes on the left menu and hit Add tax.
Click the Custom tax button, then create a Tax name for your custom tax rate, and enter a few details about how you track it.
Check the box if the tax is collected on sales or collected on purchases.
Enter the Sales rate for tax collected on sales and the Purchase rate for collected on purchases.
Click Save.

Next, enter the VAT rates in the Banking section. Here's how:

Go to the bank’s register in QuickBooks.
Look and click the transaction and hit Edit.
Under the VAT Column select the correct rate for the transaction.

Should you need further details, please refer to this article:

Set up and edit VAT settings, VAT codes and VAT rates.

Thank you for visiting the Community. If you think of any other questions, please reach back out to me. I'll be here to help anytime.

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I have bank entries resulting from customer payments. How do I enter the VAT component of each payment manually as it doesn't correspond to a standard rate