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I
info@procheck.ie
October 17, 2024
Question

How do I apply the two thirds vat rule in ireland to invoices?

  • October 17, 2024
  • 1 reply
  • 0 views
If the cost of the goods used in carrying out the work exceeds two-thirds of the total price, the rate which applies to the goods then applies to the entire transaction.

If the cost of the goods used in carrying out the work does not exceed two-thirds of the total price, the rate which applies to the service then applies to the entire transaction.
How do I do this on an invoice?

1 reply

JenoP
JenoP
October 17, 2024

Tracking and collecting VAT is a key feature of QuickBooks Online, info@procheck. I would like to offer some clarification and context regarding the VAT functionalities within the program.


When creating invoices, the QBO calculates VAT using the following key factors:

 

  • Customer's tax-exempt status: QBO takes into account whether your customer is exempt from VAT.
  • Location of sale and shipping: The program considers both where the sale occurs and the shipping destination, which can affect VAT rates and applicability.
  • Nature of goods or services: Different products or services may be subject to varying VAT rates or exemptions.
  • Tax code per line item: QBO allows you to assign specific tax codes to each line item on an invoice, ensuring accurate VAT calculation for each product or service.

 

These calculation methods cover a wide range of business scenarios and comply with VAT regulations in many jurisdictions. However, using the two-thirds rule is not supported at the moment. 

 

You'll want to consider using third-party apps that offer this function when creating sales transactions. Here's how to look for apps inside your QBO account:

 

  1. Go to the Apps menu and proceed to the Find apps tab.
  2. Click the drop-down list beside Browse categories and select the closest category.
  3. Choose an app and click on it to see more details about the features that they're offering.

 

I'd also like to provide you with some additional resources that can help you better manage VAT in QuickBooks Online:

 


You can always post follow-up questions in this forum or start a new thread if you need further assistance, whether you have questions about taxes, general bookkeeping, or any other aspect of using QBO. We're here to support you in your financial management journey.

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