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Frequent Explorer **

Subtotal + tax at 15% and tax with precise amounts

Hello.  I have a hardware shop and I want to calculate the subtotal (amount excluding vat at 15%) and the vat amount and the total amount with vat included on customer invoices.  How do you input this in QuickBooks?

 

Secondly,  if there is a vat on 1 construction bar of $1.50 and I sell 100 construction bars on an invoice the total vat amount will be $150.  How do you input items with vat at precise amounts?

 

Thanks.

13 Comments
BRC
Established Community Backer ***

Re: Subtotal + tax at 15% and tax with precise amounts

US QB does not have VAT tracking (you posted as a US QB user.)

 

QuickBooks Team

Re: Subtotal + tax at 15% and tax with precise amounts

Hey there, @Akshaykopite19.

 

I hope your week is off to a phenomenal start.

 

As was mentioned, this is the US QuickBooks section of the Community. Since your question is discussing VAT (Value Added Tax), I'll get you in touch with someone better equipped to lend a hand.

 

Thanks so much for reaching out, wishing you a safe and productive week ahead.

QuickBooks Team

Re: Subtotal + tax at 15% and tax with precise amounts

Hi Welcome to the Community

 

Thanks for you question, can I just confirm that you are using the UK version of Quickbooks? If so you would have to set up a custom vat code( which you can do in taxes and then click on add tax. We  would just advise you speak to HMRC for guidance on this. If it is the US Quickbooks Online let us know.

 

Kind regards

 

Emma

Frequent Explorer **

Re: Subtotal + tax at 15% and tax with precise amounts

Hello Emma, I'm using Quickbooks Enterprise Solutions : Accountant version 18.0.  I don't know which model it is..  How do you check that?

 

Can you explain to me line by line how you input the following taxes??

 

Thanks.

QuickBooks Team

Re: Subtotal + tax at 15% and tax with precise amounts

Hi,

 

Thank you for your message I just need to clarify before I can answer your queries what country do you reside in please and the QuickBooks product you have is that the desktop version?

 

I look forward to hearing from you.

 

Kindest regards

Frequent Explorer **

Re: Subtotal + tax at 15% and tax with precise amounts

Hello, I live in Mauritius and I have the desktop version

 

Thank You.

QuickBooks Team

Re: Subtotal + tax at 15% and tax with precise amounts

Hi there, Akshaykopite19.


Thanks for getting back with your QuickBooks Desktop details.


The QuickBooks Desktop Editions have 3 versions; US, UK, and Canada. You can only enable VAT in both UK and Canada QBDT regions.


Since you’re from Mauritius, let’s first distinguish the QuickBooks version you’re using. You’ll want to do this by going to Help, then selecting About QuickBooks: Enterprise Solutions Accountant version 18.0.


In the QuickBooks logo, you’ll see a 2018 Intuit [Region] ULC. All rights reserved message at the bottom. If it shows US, then the option to set up Vat codes isn’t applicable.


However, if it’s for the other two regions, you’ll first enable Vat from the Preferences page. Then, create a Subtotal amount you can add to the customer invoices.


To activate the Vat settings:

  1. Go to Edit at the top menu bar, then select Preferences.
  2. Choose Sales Tax, then make sure you’re in the Company Preferences section.
  3. In the Do you charge sales tax section, pick the Yes radio button.
  4. Put a check mark in the Use Customer Tax Codes box.
  5. Enter other necessary details.

To create a Subtotal Item:

  1. Go to Lists at the top menu bar, select Item List.
  2. Scroll down to the bottom, then choose New in the Item drop-down.
  3. Pick Subtotal in the Type drop-down.
  4. Specify an Item Name/Number, then Ok.

Once done, create a Vat Code specifically for your items and invoices. Here’s how:

  1. In the top menu bar, choose Sales Tax.
  2. Click Sales Tax Code List.
  3. Scroll down to the Sales Tax Code drop-down, and pick New.
  4. Type in the needed details, and click Ok.

When everything’s set, try creating an invoice, adding the Subtotal item, and choosing a Tax Code for the transaction. To do this:

  1. In the top menu bar, choose Customers.
  2. Click Create Invoices.
  3. Enter some relevant customer details.
  4. In the Tax column, select the Vat Code you’ve created.
  5. At the lower part of the Item column, choose Subtotal.
  6. Click Save and Close.

Your Subtotal should show the total amount of your customers’ ordered items. While the Vat amount will show at the bottom part.


For your second concern, you can add Vat code to your products and services. Check out these steps on how:

  1. Go to Lists, click Item List.
  2. Locate and right-click on the product/service items, then select Edit item.
  3. Choose a Tax Code you want to use,
  4. Click Ok.

That should do it! You can now record these transactions in QuickBooks Desktop.


If you have questions with the process, feel free to comment below. I’ll be around.


Enjoy your weekend!

Frequent Explorer **

Re: Subtotal + tax at 15% and tax with precise amounts

Hi, thanks for your reply.  In fact the problem is I need to integrate both the goods that are charged with tax at 15% and those goods that are charged with fixed vat amounts.  

 

For example I want to input 10 angle bars at $15 each and 5 bags of cement with cost price of $5 each.

10 angle bars at $15 each makes a total of $150 and then I have to divide the $150 by 1.15 because there is a vat of 15%.  By dividing I will get the subtotal plus the vat at 15%.  I dont know how to input this on QB?

Secondly, for the cement 5 bags of cement makes a total of $25.  But these are not charged at the rate of 15%.  The tax AMOUNT for 1 bag of cement is FIXED at $1.50 for example.  The vat amount for cement therefore differs from vat on angle bars.  The vat on cement will be $1.50 * 5 = $7.50.  I need to integrate both types of goods on a single invoice.  How to do this in QB?

 

Thanks.

QuickBooks Team

Re: Subtotal + tax at 15% and tax with precise amounts

Hi there, Akshaykopite19.


Thanks for your response and letting me know how you’d want these items and taxes to show in QuickBooks Desktop.


When creating invoices, you’ll see the VAT field at the bottom before the Total amount. You can enter two products/services with their corresponding VAT percentages and amounts in one invoice.


However, the option to add a Subtotal line item which includes the VAT for each of them is unavailable. It will only add up the total price for all products/services above it on your transaction.


Please note to create different Sales tax items and codes for the Angle Bars and Cement. This way, the program will automatically calculate the vat for them.


To create a sales tax items:

  1. Go to List at the top menu bar, select Item List.
  2. Click the Item drop-down at the bottom, pick New.
  3. Under Type, choose Sales Tax Item.
  4. Enter other relevant Information.
  5. Click Ok.

To create a VAT code:

  1. Pick Sales Tax at the top menu bar, then go to Sales Tax Code list.
  2. Click the Sales Tax Code drop-down at the bottom, pick New.
  3. Enter a Code and Description, choose Taxable.
  4. Select the Sales tax item you’ve created in the Tax Item for Sales drop-down.
  5. Click Ok.

To create an invoice:

  1. Click Customers at the top menu bar, select Create Invoices.
  2. Enter the customer’s details.
  3. In the Item column, select Cement, and enter the Quantity.
  4. From the Tax column, select the Vat Code created specifically for the Cement.
  5. In the next item line, choose Angle Bars and follow the same process as the Cement.
  6. Enter the Subtotal in any item line below Cement.
  7. Choose Save and Close.

You should see two VAT fields calculation (one for the cement and one for the Angle bars) with the percentage amount above the Total amount. I’ve added a second screenshot below for your visual reference.


Let me know how these steps work for you. I’ll be around, anytime. Enjoy the rest of your week!

 

image.png

 

Frequent Explorer **

Re: Subtotal + tax at 15% and tax with precise amounts

Hello Mr VivienJ.  Thanks for the reply.  In fact the total amount for the angle bars and the cement on the screenshot equals to 275cad which is the amount that is inclusive of tax and not tax excluded.  In my software also, there is only a single tax percentage at the bottom of the invoice, however I need two tax percentages, one for angle bars and the other for cement as shown in the screenshot.  How to do this in Quickbooks?

 

thanks.

QuickBooks Team

Re: Subtotal + tax at 15% and tax with precise amounts

Hi Akshaykopite19,


I appreciate you letting me know about how your invoice looks like. Let’s figure things out and make sure you’re able to get the settings you need.


I just want to clarify, which version of QuickBooks Desktop Canada are you using? Is it the 2018 or the 2016?


Did you create separate Vat codes for the two items? Since the 275CAD amount is Vat inclusive, do you want to separate it from the item amount?


Please let me know and I'd be delighted to help you out. I'm looking forward to hearing from you soon.

 

Frequent Explorer **

Re: Subtotal + tax at 15% and tax with precise amounts

Hello.  Which version should I use?

QuickBooks Team

Re: Subtotal + tax at 15% and tax with precise amounts

Thank you for adding a comment, @Akshaykopite19.

 

Allow me to share some information about what version of QuickBooks Desktop is supported for VAT.

 

All versions of QuickBooks Canada are supported for VAT. Make sure your QuickBooks is updated to the latest release.

 

Feel free to drop a comment if you have any other questions about VAT. We're always here to help!