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userinfo40
Level 1

I need to record company income & expenditure pre-Sept 20 (vat 23% -> 21%). How do I set up a new 23% Vat rate? I am unsure of what settings to choose for each option.

 
3 Comments
Joesem M
QuickBooks Team

I need to record company income & expenditure pre-Sept 20 (vat 23% -> 21%). How do I set up a new 23% Vat rate? I am unsure of what settings to choose for each option.

Hello there, @userinfo40.

 

Since you'll be using VAT for your expenses, make sure to select the Purchases, Sales, and Taxable purchases option. This way, it will deduct from your VAT payable. To set up the new VAT rate, you can go to Tax Centre. Let me guide you how:

 

  1. From the left menu, select Taxes.
  2. In the top right-hand corner, click Add tax.
  3. Choose which type of tax rate you want to set up.
  4. Enter the details of your tax rate.
  5. Select Done when finished.

Joesem Molat1.JPG

Once a rate has been created, you cannot delete the rate. If you need to change that rate, you'll have to deactivate the rate and then create a new one.

 

For detailed steps, please check this article: How do I set up sales GST/VAT rates and use them on forms? (International QBO).

 

When you file your VAT return, you can always run the VAT Detail and Recent Transactions reports in the Reports menu. This ensures the transactions you have created are allocated into the correct box.

 

To know the recent features to make your VAT filing easier, check out this article: VAT Feature Update FAQ.

 

Please know that you're always welcome to comment below if you have other concerns or follow-up inquiries about setting up VAT rates. I'm just around to help. Take care.

 

 

userinfo40
Level 1

I need to record company income & expenditure pre-Sept 20 (vat 23% -> 21%). How do I set up a new 23% Vat rate? I am unsure of what settings to choose for each option.

Thank you for your response. 

I don't understand why I have a different tax agency to you and then I also seem to have different options for 'Show tax amount on return line' & ' Show net amount on return line'.

What do I select in my case? 

 

To be clear I am trying to set a 23% VAT rate to be used when categorising my (pre 1st September 2020) income & expenditure from my banking.

 

Thank you

IamjuViel
QuickBooks Team

I need to record company income & expenditure pre-Sept 20 (vat 23% -> 21%). How do I set up a new 23% Vat rate? I am unsure of what settings to choose for each option.

Hello there, @userinfo40.

 

Let me share some information on how you can set up VAT in QuickBooks.

 

When you first set up VAT, QuickBooks uses the region or the country version in automatically determining your VAT agency. If you're using QuickBooks Online South Africa, it will show the South African Revenue Service or SARS as the VAT Agency.

While it will display Israel Tax Authority if you're using the QuickBooks Online Israel version.  

 

QuickBooks Online UK 

 

On the other hand, the VAT rate set up depends on your business and the special directives coming from your VAT agency. That being said, I'd recommend contacting the VAT agency nearest to you so you'd be guided accurately. Also, you can consult with an accountant or a tax professional. 

 

I'm adding these articles to help you manage VAT in QuickBooks:

Feel free to swing by here if you have other questions about using QuickBooks to track VAT-related transactions. I'm always here to help.