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Create custom tax rate

SOLVEDby QuickBooksQuickBooks OnlineUpdated 1 month ago

In order to create custom tax rate, follow the steps below:

  1. Select VAT from the left menu.
  2. In Tax Centre, select Add tax.
  3. A panel slides out from the right. Here, select the first option Tax rate.
  4. Enter the Tax name (For example. ST 4%).
  5. Enter Description.
  6. In case of multiple tax agencies, select the Tax agency under which you want to create this new tax rate.
  7. Select whether this new tax rate applies for Sales or Purchases or to both. Note: It's advised that you select both the options.
  8. If you've selected Sales, enter the Sales rate applied for Sales transaction.
  9. Select the Account type for this tax rate. Note: Usually it'll be a Liability account. If in doubt, please consult with your accountant.
  10. Select an option from the Show tax amount on return line dropdown. Note: The dropdown to select this may or may not be available or the options that you see may be worded differently depending on the agency you are creating the rate under.
  11. Select an option from the Show net amount on return line dropdown. Note: The dropdown to select this may or may not be available or the options that you see may be worded differently depending on the agency you are creating the rate under.
  12. If you've selected Purchases, enter the Purchase rate.
  13. Select the Account type for this tax rate. Note: Usually it'll be Liability. However, in case of agencies where purchase tax isn't reclaimable, this account type will be set to Expense by default. If in doubt, please consult with your accountant
  14. Select an option from the Show tax amount on return line dropdown. Note: The dropdown to select this may or may not be available or the options that you see may be worded differently depending on the agency you are creating the rate under.
  15. Select an option from the Show net amount on return line dropdown. Note: The dropdown to select this may or may not be available or the options that you see may be worded differently depending on the agency you are creating the rate under.
  16. Select Save.

A new tax rate will be created under the Tax Agency you'd selected while creating this custom rate. You can see the details of this new rate by selecting Edit rates under Edit <Tax Agency Name> in the Tax Centre. For example. Edit VAT - Edit rates.

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