QuickBooks usually rounds off into two decimal places, lobweb.
QuickBooks Online automatically calculates VAT when you make a sale. And QBO calculates the total tax rate based on the following:
- Your customer's tax-exempt status
- Where you sell and where you ship
- What you sell
Moreover, you can create a VAT adjustment in QBO. You'll have to set up an account for VAT adjustment. Ensure to use the correct account type when adjusting. You'll have to set up an expense account if you want to increase your VAT, or an income account to decrease it. Note that if you already have these accounts, you can proceed to create an adjustment.
To add an adjustment:
- Go to VAT.
- Locate the tax period you need to adjust, then select Prepare return.
- Select Adjust against the entry to be adjusted.
- Select the Adjustment date and the Tax rate.
- Select the Adjustment account for adjusting VAT.
- Enter the Adjustment amount.
- Enter notes in Memo, then select Save.
You can learn more details about the adjusting process in this article: Create or delete a VAT adjustment.
Know that the Community is here if you'll encounter difficulties navigating your account.
