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IDS Consulting Ltd
Level 1

Can i set up to apply the Ghana Levy of 5% and VAT 12.5% on the Net + Levy amount in QBO Global?

 
Solved
Best answer July 10, 2020

Best Answers
JessT
QuickBooks Team

Can i set up to apply the Ghana Levy of 5% and VAT 12.5% on the Net + Levy amount in QBO Global?

I'll help you with your tax rates, IDS Consulting Ltd.

 

If you need to charge a combined 5% and 12.5% VAT, you can create a group rate. Then, use it on your transactions. I presume you already have a tax item for the 12.5% rate, so we'll only create one for the 5% rate. Click here to see the video tutorials.

  1. Go to Taxes, select Add Tax.
  2. Select Tax rate.
  3. Enter the details of your tax rate.
  4. Select Done when finished.

Create a group rate, combining the 12.5% and 5% rates.

  1. In the Tax Centre, select Add Tax.
  2. Select Group Rate and then select Next.
  3. Enter the Group name and Description.
  4. Select the 12.5% tax rate and whether it applies to Net, Tax, or both.
  5. Select the 5% tax rate and whether it applies to Net, Tax, or both.
  6. Select Done.

When you create a transaction, select the group tax name on the TAX field of your items, and that's it.

 

You can always go back to this thread if you have other questions with taxes. Have a good one!

View solution in original post

3 Comments
JessT
QuickBooks Team

Can i set up to apply the Ghana Levy of 5% and VAT 12.5% on the Net + Levy amount in QBO Global?

I'll help you with your tax rates, IDS Consulting Ltd.

 

If you need to charge a combined 5% and 12.5% VAT, you can create a group rate. Then, use it on your transactions. I presume you already have a tax item for the 12.5% rate, so we'll only create one for the 5% rate. Click here to see the video tutorials.

  1. Go to Taxes, select Add Tax.
  2. Select Tax rate.
  3. Enter the details of your tax rate.
  4. Select Done when finished.

Create a group rate, combining the 12.5% and 5% rates.

  1. In the Tax Centre, select Add Tax.
  2. Select Group Rate and then select Next.
  3. Enter the Group name and Description.
  4. Select the 12.5% tax rate and whether it applies to Net, Tax, or both.
  5. Select the 5% tax rate and whether it applies to Net, Tax, or both.
  6. Select Done.

When you create a transaction, select the group tax name on the TAX field of your items, and that's it.

 

You can always go back to this thread if you have other questions with taxes. Have a good one!

View solution in original post

Stellar Lodge
Level 1

Can i set up to apply the Ghana Levy of 5% and VAT 12.5% on the Net + Levy amount in QBO Global?

Hi Jess,

 

We have just began with Quickbooks and have the same issue.  We understand the group tax, however, the Levies are charged on the goods/services purchased, and the 12.5% VAT is actually charged on top of the levies plus the cost of the goods/service.

 

Cost of Goods GHS  100

NHIL                              2.5

GetFund                          2.5

Sub Total                   105

Vat                              13.13

Total                          118.13

 

 

Is there a way to structure that in QB?

Catherine_B
QuickBooks Team

Can i set up to apply the Ghana Levy of 5% and VAT 12.5% on the Net + Levy amount in QBO Global?

Hello Stellar Lodge, 

 

Thanks for providing additional information about your VAT setup. We're unable to create subtotal and add a VAT to it based on your example so the option my colleague shared may not be applicable. Adding a VAT is per line item and not on the subtotal. You can refer to the screenshot for your reference on what I'm referring to. 

 

In case you need references on how the system handles VAT, you can visit these articles: 

 

If there's anything else that you have questions with about QuickBooks, please don't hesitate to post them here. Take care and have a good one!