Set up and use VAT in QuickBooks Online

Just joined QuickBooks? Here's how to set up VAT for the first time:

Note: Depending on your location, QuickBooks may already have taxes set up for you. 

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.

You can set up multiple tax agencies, If you wish to set up another tax agency; refer to Create custom tax agency.
Once you have set up the tax centre, you can also add custom tax rates.

Depending on where you sell, tax rules can change for products. When ready, you can set sales tax for anything you sell. This helps QuickBooks know how much tax to charge for each product.

• Tax rates can also change if you ship products or perform services at your customer's address.
• Some customers are not required to pay sales tax, like churches, schools, and other non-profit organisations.
• Make sure you have your customers' correct tax status, billing address, and shipping address entered in QuickBooks Online. Here's how to double-check and edit your customers' info in QuickBooks.

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

See sales tax details to make sure they're right before you file and pay your return. You can run the Tax Liability report anytime to check your sales tax info.

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