Mobile App (Android) Calculates wrong VAT

PeterSM · ‎May 27, 2019

I am very new to Quickbooks Online and I have an issue with the mobile app. I want to use the app for recording receipts , mostly travelling expenses but I do not understand how to input the VAT. I have entered the amount £5.49 which is inclusive of VAT so I have selected Tax is included in amounts and it calculates the VAT as £1.10. What am I doing wrong? (Should be 0.92!)

FritzF · ‎May 27, 2019

Thanks for getting back to us, @PeterSM.

I checked the screenshot you've provided, and I noticed that you chose the 20.0% ECS code/rate. If you have to charge VAT at the standard rate on all goods and services you supply, I suggest changing it to 20.0% S. This will change the rate to 0.915 or 0.91.

For additional information, please refer to these articles:

That should point you in the right direction. Please let me know how it goes or if you have any follow-up questions. I'll be here to help. Have a good one.

View solution in original post

JessT · ‎May 27, 2019

Welcome to the QuickBooks family, PeterSM!

You're not doing wrong, and the app is calculating correctly. Your 20%- VAT is inclusive, so it's part of the 5.49 amount. If you calculate it, 20% of 5.49 is 1.098 (or 1.1 rounded off).

Are you also accessing QuickBooks using on your computer? If yes, you can check out the video tutorials for your reference in the future. We also have online articles an as alternative reference.

If you have questions in the future, you're free to post back.

PeterSM · ‎May 27, 2019

Thanks for the reply.

OK 5.49 is VAT inclusive so to calculate the VAT element you divide by 120 and times by 20.

5.49/120=0.04575*20=0.915 which agrees with my receipt!

The reciept says 4.57 (exVAT) plus 0.92 (VAT) total £5.49.

Have I misunderstood?

FritzF · ‎May 27, 2019

Thanks for getting back to us, @PeterSM.

I checked the screenshot you've provided, and I noticed that you chose the 20.0% ECS code/rate. If you have to charge VAT at the standard rate on all goods and services you supply, I suggest changing it to 20.0% S. This will change the rate to 0.915 or 0.91.

For additional information, please refer to these articles:

That should point you in the right direction. Please let me know how it goes or if you have any follow-up questions. I'll be here to help. Have a good one.

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Mobile App (Android) Calculates wrong VAT