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How do I add a tax to every expense that i have? For example, we pay 21% IVA(VAT) on everything we pay.

 
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How do I add a tax to every expense that i have? For example, we pay 21% IVA(VAT) on everything we pay.

Thanks for posting in the Community, @ap37.

 

You can add 21% IVA (VAT) on every expense, and it requires you to use the correct region of QuickBooks Online (QBO). It looks like you're using the US version. I'd first suggest canceling it and subscribe to the QBO version specific to your country. From there, you can set up this tax rate for your expenses. I'll guide you how.

 

To sign up for an International version: 

  1. Go to https://quickbooks.intuit.com/choose-country/. 
  2. Select the correct continent and country.
  3. Choose the QBO version that fits your business.
  4. Select either Buy Now or Free 30-day Trial.
  5. Click Add another company beside Already have a QuickBooks Online account?
  6. Enter your existing Intuit email address and password.
  7. Complete the signup process. 

 

After that, let's turn on the tax tracking feature in the program. Just go to Taxes from the left menu. Select Set up tax and enter the details of your tax agency. Then, click Next and choose Done

 

Once turned on, you can add the 21% IVA (VAT) rate from the Tax Centre. Here's how:

  1. Go back to Taxes from the left menu.
  2. Select Add Tax.
  3. Choose Tax rate.
  4. Enter the Tax name and its Description
  5. Check the Purchases box. 
  6. Enter the Purchase rate.
  7. Choose the appropriate account. 
  8. Hit Save

 

The screenshots below show you the steps. For detailed instructions, go through this article: Setting Up GST/VAT Rates and Using Them On Forms

AddATaxRate1.PNG

 

AddATaxRate2.PNG

 

Every time you create an expense, you'll be able to select the IVA (VAT) rate in the Tax column. View the screenshot below for your visual reference. 

VATRateInTheExpense.PNG

 

During tax time, you can file and pay the Tax/GST you owe through the software. Just go back to the Tax Centre. Then, choose Prepare return from the Returns tab or click Record payment from the Payments tab. To learn more about this process, visit this article: File and Pay Tax/GST

 

You're always welcome to drop a comment below if there's anything else you need. Have a great rest of your day, @ap37

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