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September 7, 2022
Question

Recording an invoice with vat tax included?

  • September 7, 2022
  • 1 reply
  • 0 views
why is the vat tax recorded as a liability when i am paying it to the vendor

1 reply

September 7, 2022

Good day, dleigh-doegode-c.

 

You've got me here to help share some information about how VAT works in QuickBooks Online.

 

The VAT tax may be recorded as a liability depending on the account assigned to the tax item when you first created it. However, we can edit it through the Tax settings. I'll show you how:
 

  1. Click the Gear icon in the upper-right corner and select Account and Settings.
  2. Choose the Advanced tab and go to the Accounting section.
  3. Choose Inclusive of Tax in the Default tax rate selection field.
  4. Select Save and Done.

 

Then, edit the invoice and set it to Inclusive. 

Here are some references that you can check out about handling VAT in QuickBooks:

 

 

Please let me know if you need help tracking and managing your taxes in QuickBooks Online. I'm always happy to assist.