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I have found the 20.0% RC Tax Code, but I would like to create new tax code for 19% Reverse Charge.
Is that possible?
I'll guide you through creating a new tax code in QuickBooks Online (QBO), Moisis.
Let's begin by going to the Taxes menu, then proceed to the following steps below:
For further information on configuring taxes in the system, check out this article: Set up and edit VAT settings, codes and rates in QuickBooks Online.
Here are some articles you can refer to when having VAT adjustments and understanding VAT codes in QBO:
Please touch base with me here for all of your tax-related inquiries. You can count on me for information and references. Simply hit the Reply button below. Keep safe.
Hi Siriel,
Thanks for your response. I know how to add taxes as I have already added one that I need.
The issue I have is that I cant see how i can create a reverse charge tax code which needs to be configured accordingly for the tax report
Basically I need a duplicate of the 20% Reverse Charge with a different percentage
Thanks for providing clarifying information, Moisis.
If you're referring to creating a new customized tax code, we can utilize the Tax rate tab that my colleague provided. This way, you can use it in QuickBooks Online (QBO) whenever needed.
Here's how:
For additional reference, please review this article: Create a new VAT code in QuickBooks Online.
However, if you're referring to using a 19% reverse charge instead of 20%, this is not an option in QBO. Please be guided that QBO only allows a standard tax rate of 5% or 20% as per HMRC regulations.
To achieve your goal, you'll have to apply an adjustment to your VAT liability in QBO. Take note that if you proceed with adjusting your VAT, it will affect your returns and VAT-related data. It's best to reach out to your accountant before applying some adjustments.
Moreover, I'm adding this article as your guide to managing VAT exemptions in QuickBooks: VAT exceptions and reports in QuickBooks Online.
If you have more concerns about managing your VAT, don't hesitate to reply to this thread. We're always happy to help.
Again, at the moment there is no way on the interface to add a Reverse Charge
The bellow example is from your documentation on this page https://quickbooks.intuit.com/learn-support/en-uk/help-article/value-added-tax/quickbooks-vat-codes/...
20.0% RC SG - Standard reverse charge VAT for services
Code for purchase form |
+/- VAT at 20% to Box 1 and 4 +/- Net Purchase to Box 6 and 7 |
What I need is the equivalent for 19% but adding a new tax doesn't let you choose the different boxes 1,4,6,7 that should be used
I can see how significant it is for you to add a reverse charge, Moisis. I can provide additional information about the tax rates and codes in QuickBooks Online.
If you need to apply a reverse charge, using a rate of 19%, it is not applicable in QuickBooks Online as it only accepts 5% or 20%. To overcome this limitation, you can create a new tax rate that has a 20%.
You can apply a VAT adjustment after you create the new rate since you're using a 19% tax rate.
You can visit our article for detailed steps in making VAT adjustments: Make VAT adjustments in QuickBooks Online
If you're confused, you can contact your accountant for further details and advise.
Furthermore, I'll provide this article again on how to process VAT exceptions: VAT exceptions and reports in QuickBooks Online
Comment or reply if you have more concerns about managing your VAT in QBO. I'm always here to help.
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