One of our clients is eligible for Zero VAT Tax (wherein they're subject to Tax, but the rate is 0% (the proper definition in stated here for clarification). I would like assistance as to how I can make this work. Thank you in advance!
Definition of Zero VAT that I'm looking for:
Under the VAT framework in the Philippines, certain sales can be classified as Zero-Rated or 0% VAT Sales. Such sales will be taxable transactions for VAT purposes, but do not generate any Output VAT. For such sales, a seller is not required to apply the standard 12% VAT rate. (Source: https://cloudcfo.ph/blog/taxes/vat-for-corporations-in-the-philippines/)
Hi Skilltonne, we've provided you with a link that explains the tax codes used by Quickbooks and what boxes they apply to within the VAT center. https://quickbooks.intuit.com/learn-support/en-uk/value-added-tax/common-vat-codes/00/239529
I got your back in managing VAT in QBO, @Skellytonne.
The tax tracking feature in the system follows general guidelines. That said, if the Philippines has a region specification for tax tracking, this may or may not be available.
However, QBO allows you to add different types of taxes depending on what is required in your region like the 0% VAT-Rated. This way, you'll be able to apply them to your transactions and pull up reports that contain the tax information.
To add tax rates:
To view the data of the taxes that were applied to your entries, you may click the View reports button on the Tax page and select your desired report. Please see the screenshot attached for your reference:
Know that the VAT rate that you've applied will reflect on their designated boxes on the VAT return.
For more insights on how VAT codes work in the system, please see this link: How do I set up sales GST/VAT rates and use them on forms? (International QBO).
Lastly, I'd like to share this reference with you to guide you in utilizing QuickBooks together with its great features: Get started with QuickBooks Online.
I'm just a reply away to assist you if you have any other questions. Take care!