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Julia Hulley
Level 1

Change multiple transactions tax types to "out of scope of tax"

I have multiple transactions that are imported via a file in bank reconciliation, these should be "out of scope of tax", how do i change a batch of these as they all come in on the vat report 

1 Comment 1
RCV
QuickBooks Team
QuickBooks Team

Change multiple transactions tax types to "out of scope of tax"

Let me share some details about changing the Tax status by batch in QuickBooks Online (QBO), Julia.

 

If you are using QBO Advanced, we can modify the tax code by batch by using the Reclassify transactions feature. You can check out the steps and details in this article: Reclassify or move multiple transactions in QuickBooks Online Accountant and Advanced. You can also use the reclassify tool if you have an accountant.

 

If you are using other QBO versions, we'll need to manually open each invoice and select the No VAT option in the Amounts dropdown. We are marking these invoice line items as "Out of Scope" for VAT purposes. This excludes them from your VAT calculations and reporting (without inadvertently applying a 0% VAT rate). Here's how: 

 

  1. Open the invoice.
  2. Locate the Amounts in are dropdown.
  3. Instead of leaving this set to the default option (likely Inclusive of VAT or Exclusive of VAT), select the "No VAT" option from the dropdown.
  4. This will ensure that no VAT is calculated or applied to the line items on this invoice.

 

Also, you'll want to check for a third-party application that can help you with changing the tax code in bulk. Check out this link for a list of QuickBooks-compatible apps: https://quickbooks.intuit.com/app/apps/home/en-global/. We can also do it in QBO by following the steps below:

 

  1. Go to Apps on the left side menu.
  2. Search for the app in the Find apps to streamline your work field.
  3. Look for an app that supports the Batch feature.

 

Moreover, check out this article for more insights on how VAT codes work in the program: How do I set up sales GST/VAT rates and use them on forms? (International QBO).

 

I've got your back if you have more questions about managing taxes or any QuickBooks-related concerns. You have a good one.