Hi QBO team,
Could you please advise if it possible to set up 2 flat rate levies on sales (except VAT)?
Eg. there're 2 levies (by 2.5% each on sales). Company sales product for GHS 100, levy 1 = GHS 2.5 and levy 2 = GHS 2.5, plus VAT 12.5% (100+2.5+2.5)*12.5 = GHS 13.13, totally GHS 118.13 (100+2.5+2.5+13.13)
If it possible please advise how to set up flat rate levies on sales
Hi there, @VPM.
If you're using the US version of QuickBooks Online, there isn't an option to do Tax setup for GHS. However, if you're using the Global version of QBO, you can create this taxes separately. Then, group the 2 taxes in order to change a single transaction.
Also, I suggest consulting your tax adviser or accountant to help you set up the correct Tax Rate. This is to avoid having any problems with taxes in the future.
Here's how to record a Tax Rate:
To group the two Tax Rates, here's how:
You can also check out this article to know how to manage sales tax in QuickBooks Online: How do I set up sales GST/VAT rates and use them on forms? (International QBO).
I added this article for future reference about the VAT Feature Update FAQ in QuickBooks Global version.
Feel free to comment below by clicking the reply button if you need anything in regards to Quickbooks. I'll be here to lend a helping hand. Stay safe there.
Hi QBO team,
@MarsStephanieL, a lot of thank for clarification
Could you please advise:
1) how to delete/edit the group rate (there is no actions like edit or make inactive)?
2) why VAT is calculated based on the net amount and only 1st levy (without 2nd), eg. I set up group rate (1st tax - GETFL 2.5% - net amount, 2nd NHIL 2.5% - net amount, 3rd VAT 12.5% - net + tax amount), but VAT is calculated only based on the net amount and 1st tax (100 Net, 2.5 GETFL, 2.5 NHIL, 12.81 VAT - 102.5*12.5%)?
It's nice to see you again in the Community, @VPM.
As of now, the option to edit or delete the group rates is unavailable, although you can create a new group rate and then give it a different name to be recognized as the latest.
Also, I've replicated your concern about the Value Added Tax (VAT) computation and use an Invoice transaction to see if it will still calculate only the first VAT and will only base on the net amount. I can see that it has summed up the total amount with the grouped item tax rates.
I added a screenshot for your reference to know how it looks like. (Please disregard the first VAT item, I added extra to test if it'll only calculate the first VAT.)
I'd like to know more about you set up your group tax rate and a sample transaction so that I can help you further. You can send me some screenshots too.
Some scenarios will help you determine where you need to update your rate. One of them is a recurring transaction that uses the old tax rate. For more details, see this handy article: Manage a tax rate change.
I'll wait for your response in this thread. Take care.
Hello again @VPM.
Thanks for adding more details about your concern. The screenshots provide a clearer view of what happened to the calculation.
The calculation for the group sales tax is based on what’s selected in the Applicable on section.
Based on the information shared, you’ve selected the Net amount (GEFTL and NHIL) and Net + Tax amount for the VAT. That’s why QBO takes 2.5% of the net amount and then another 2.5% from the sub-amount.
If you decide to change how to apply the tax rate, create another group tax, and select the appropriate option. Here's how:
For future reference, the following articles outline the instructions on how to deactivate a VAT or GST rate and information where the group tax rate applies to.
If you have any clarifications or questions, post a comment below. I’ll get back to answer them for you. Have a great rest of the day.
Hi QBO team,
@Rasa-LilaM, my issue is that QBO takes only first 2.5% without second 2.5%, eg. for net amount 100 correct calculation should be 1st levy - 2.5, 2nd levy - 2.5, and VAT (100+2.5+2.5)*12.5%=13.13 instead of this QBO calculates 1st levy - 2.5, 2nd levy - 2.5, and VAT (100+2.5)*12.5%=12.81, please advise how to resolve this issue
Also by posting of Sales receipt QBO doesn't split levies between accounts, eg. for net amount 100 correct transactions should be DR Cash or A/R - 118.13 and CR Sales revenue - 100, CR Levy 1 - 2.5, CR Levy 2 - 2.5, CR VAT output - 13.13 instead of this QBO posts DR Cash or A/R - 117.81 CR Sales revenue - 100, CR VAT - 2.5, CR VAT - 2.5, CR VAT output - 12.81, please advise how to resolve this issue