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Level 2

On my tax report, I have 0 Rs paid on purchases. VAT purchases seems to be correctly set up and impact most of my bills. Dont know what Im doing wrong. Can you help plea

 
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Best answer May 24, 2020

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QuickBooks Team

On my tax report, I have 0 Rs paid on purchases. VAT purchases seems to be correctly set up and impact most of my bills. Dont know what Im doing wrong. Can you help plea

Thank you for the screenshot added, @Caroline16.

 

To include sales tax when creating bills or purchases in QuickBooks Online, you can set up a custom tax from the Taxes page then choose the This tax is collected on purchases option to include the sales tax when creating a bill.

 

Here's how:

 

  1. Click on Taxes at the left pane.
  2. Select Add tax.
  3. Choose Custom tax.
  4. Fill out all the fields needed in the Add tax panel. Place a check-mark for This tax is collected on purchases option.
  5. Enter the rate in the Purchase rate field.
  6. Place a check-mark for Purchase tax is reclaimable option if it is reclaimable.
  7. Click Save.

 

Once completed, create a bill and enter the amount and choose the tax rate you've set up in the Tax or GST column.

 

For additional reference about Sales GST/VAT read these articles:

 

Leave a comment below if you have any other questions. I'm a few clicks away to help. Have a good day!

View solution in original post

4 Comments 4
Highlighted
QuickBooks Team

On my tax report, I have 0 Rs paid on purchases. VAT purchases seems to be correctly set up and impact most of my bills. Dont know what Im doing wrong. Can you help plea

Hello there, @Caroline16.

 

I'm here to share some insights about the zero rate VAT that are showing on your tax report in QuickBooks Online.

 

At times, some goods and services are zero-rated. This means they are taxable for VAT, but the VAT rate is zero percent. Sometimes the reduced rate only applies in certain circumstances, or it may depend on who the customer is. You may refer to the HMRC's website for complete details about this rule.

 

For now, I recommend reviewing the VAT set up again to see if they are all correct. If there are incorrect ones, you may modify them to keep your records accurate.

 

I've attached here some references that you an check out about the VAT codes and exceptions in QuickBooks Online:

I'll be right here to help if you need anything else, Caroline. Just drop a reply below. Have a nice day!

Highlighted
Level 2

On my tax report, I have 0 Rs paid on purchases. VAT purchases seems to be correctly set up and impact most of my bills. Dont know what Im doing wrong. Can you help plea

Hello BettyJane, 

 

Thank you very much for your reply.

I ve checked again and I can confirm that all products are taxable (please see screenshot)

I think the problem comes from my VAT setup. You can see my settings on the screenshot enclosed. Can you please take a look ? Obviously, something is wrong as VAT purchase is positiv (please see Tax liability (??) report)

 

Thank you for your precious help

 

Best regards

Highlighted
QuickBooks Team

On my tax report, I have 0 Rs paid on purchases. VAT purchases seems to be correctly set up and impact most of my bills. Dont know what Im doing wrong. Can you help plea

Thank you for the screenshot added, @Caroline16.

 

To include sales tax when creating bills or purchases in QuickBooks Online, you can set up a custom tax from the Taxes page then choose the This tax is collected on purchases option to include the sales tax when creating a bill.

 

Here's how:

 

  1. Click on Taxes at the left pane.
  2. Select Add tax.
  3. Choose Custom tax.
  4. Fill out all the fields needed in the Add tax panel. Place a check-mark for This tax is collected on purchases option.
  5. Enter the rate in the Purchase rate field.
  6. Place a check-mark for Purchase tax is reclaimable option if it is reclaimable.
  7. Click Save.

 

Once completed, create a bill and enter the amount and choose the tax rate you've set up in the Tax or GST column.

 

For additional reference about Sales GST/VAT read these articles:

 

Leave a comment below if you have any other questions. I'm a few clicks away to help. Have a good day!

View solution in original post

Highlighted
Level 2

On my tax report, I have 0 Rs paid on purchases. VAT purchases seems to be correctly set up and impact most of my bills. Dont know what Im doing wrong. Can you help plea

Thank you very much all for your help ! 

 

Problem solved !