Set up and use automated VAT in QuickBooks Online

QuickBooks automatically calculates the total VAT rate for each sale based on the following:

• Your customer's VAT exempt status.
• Where you sell and where you ship to.
• Your service or product's VAT category.

Learn more on how QuickBooks makes each VAT calculation accurate.

QuickBooks Online keeps track of VAT on all of your transactions and calculates how much you owe.

1. Go to VAT and select Set up VAT.
2. Select Start of VAT period and Filing frequency from the dropdown.
3. Select your Reporting method (usually it'll be Accrual, but if in doubt, please consult your accountant).
4. Enter your VAT Registration No (optional).
5. Select Next, then select OK.

Once you have set up the tax centre, you can also add custom tax rates.

Rules on how to tax a product can change depending on where you sell.

When you're ready, you can assign VAT categories to anything you sell. This lets QuickBooks know how much VAT you need to charge based on what exactly you're selling.

Tax rates can also change if you ship products or perform services at your customer's address. And some customers are not required to pay VAT, like churches, schools, and other non-profit organisations.

Make sure you have your customers' correct tax status, billing address, and shipping address. Here's how to double-check your customers' info in QuickBooks.

When you're done setting things up, you can start using the VAT feature. We'll show you how it works and where you'll see it when you create an invoice or receipt for your customer.

Get a detailed look at the taxes you owe and why you owe them. This helps you make sure everything is accurate before you file and pay your VAT return.

You can run the Tax Liability report anytime to check your VAT info.

Learn how to file your VAT return and record your tax payment.