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GDvanderWalt
Level 1
posted
‎February 17, 2022 11:56 PM
last updated ‎February 17, 2022 11:56 PM

Separate VAT registrations in one company

Hi

 

This query relates to Quickbooks Premier Accountant edition 2020.

 

The business requires a main VAT registration as well as separate VAT branch registrations.  To achieve branch separation for accounting purposes "classes" are used.

 

Separate tax agencies have been set up for each individual VAT registration number.

The only way I can see to ensure that VAT is allocated to the correct tax agency for reporting purposes would be to have VAT tax codes specific to each tax agency only:

 

VAT tax code                  Tax agency

S                                     Agency 1 (Standard rate for tax agency 1 only)

S1                                   Agency 2 (Standard rate for tax agency 2 only)

S3                                   Agency 3 (Standard rate for tax agency 3 only)

 

Could you please advise how to achieve the above?

 

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1 Comment 1
Rose-A
Moderator
Moderator
‎February 18, 2022 04:09 AM

Separate VAT registrations in one company

Hey there, GDvanderWalt.

 

To ensure that the VAT is allocated to the correct agencies, you can create a custom tax agency and assign their number. Here's how:

 

  1. Go to Supplier menu, then select Supplier Centre.
  2. Select New Supplier to open New Supplier window.
  3. In the Supplier Name field, enter the name of the tax agency (as you want it to appear on your supplier list), address, and contact information.
  4. If you owe the tax agency outstanding sales tax, enter the amount in the Opening balance field, then enter the date in the As of field.
  5. On the Sales Tax Settings tab, select the checkbox for Supplier is a Sales Tax Agency.
  6. Enter the Business Number Number, then select Tax Return from the Tax Return drop-down.
  7. In the Reporting Period field, choose the appropriate reporting period (for the tax agency) from the drop-down.
  8. Choose the Period Ending you use for the filing based on the Reporting Period.
  9. Enter a Tax label. Select the account used to track sales separately to: ( Can be different account)
  10. Select the account used to track purchases separately to: (Can be different account)
  11. Check if the agency calculates taxes on other taxes (piggyback). Check if you include this tax when billing for expenses.

 

You can refer to this article for more details: How to set up sales tax in QuickBooks Desktop. Even if this article is for QuickBooks Desktop CA, the same principles can be applied to your Global account.

 

Additionally, you can visit the following resources. These will provide you steps on how to add an agency in QuickBooks Online as well as assigning a VAT to your products:

 

Create custom tax agency.

Set up and use VAT in QuickBooks Online.

 

Feel free to drop me a reply below if you need additional help.

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