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Intuit
22 helpful votes

How do I set up sales GST/VAT rates and use them on forms? (International QBO)

QuickBooks Online can automatically track your sales tax for you through the Tax feature. To use the tax feature, you need to first turn it on and then create your tax codes as necessary.

If you are using QuickBooks Online in Mexico, Malaysia, Singapore, United Arab Emirates, or South Africa, a default set of GST/VAT codes are created for you automatically.

Turn on tax tracking

  1. Select Tax on the left menu and select Set up tax.
  2. Set up the tax agency details such as the name of your tax agency, any official tax number that has been assigned to your company, your reporting method, how often you file your tax to your tax agency, and whether this tax is meant for sales or purchases, then select Next.
  3. Follow the steps to finish the setup and select Done.

Once sales tax is set up, you'll see the Tax Centre. Also, you'll see a Tax/GST column on your sales and purchases forms.

Add tax rates

If you are in Mexico, Malaysia, Singapore, United Arab Emirates, or South Africa, QuickBooks Online automatically creates default tax rates for you.

You can create additional tax rates if necessary.

Important: If you need to change a tax rate, we recommend you create a new tax rate instead of updating an existing one because the existing rate may have been used on prior transactions and changing the rate could affect your sales tax tracking.

  1. In the Tax Centre, select Add Tax.
  2. Choose which type of tax rate you want to set up.
  3. Enter the details of your tax rate. If you need help with this screen, select the help button (yellow question mark).
  4. Select Done when finished.

Deactivate tax rates

Please note that once a rate has been created, you cannot delete the rate. If you need to change that rate, deactivate the rate and then create a new one.

  1. In the Tax Centre, use the side arrows to find the tax you want to deactivate.
  2. Click on Edit tax in the top right corner
  3. Click on Edit rate
  4. Under Action, click Edit and then click Make inactive

Important: Please note that you can't have two rates with the same name. To solve this, rename the deactivated rate something else. Then, make a new tax rate with the correct name.

Add group tax

Important: Group tax, once created, cannot be edited or deleted.

  1. In the Tax Centre, select Add Tax.
  2. Select "Group Rate" and then select Next.
  3. Enter the Tax Code and Description.
  4. Select the Tax Rate and where it applies to Net, Tax, or both.
  5. Select Done.

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