Where does vat(8%) apply and petrol 8.0% apply in fule invoice purchase and sales invoice

Let me add some additional insights about where VAT applies, usermustafasurow1995.

Generally, Value-Added Tax (VAT) applies depending on the transactions and the items that you've entered in QuickBooks Online (QBO). You'll want to create a custom tax rate to specifically point out where these taxes apply. Follow the step below:

1. Click Taxes on the left menu.
2. In Tax Centre, click on Add Tax.
3. A drawer slides out from the right. Here, select the first option "Tax rate".
4. Enter the Tax Name (eg. ST 4%).
5. Select the Tax Agency under which you want to create this new tax rate (eg. VAT or Service Tax, etc...).
6. Select where this new tax rate applies for Sales or Purchases or to Both (*it is advised that you select Both in this drop-down).
7. Enter the Tax rate applied for the Sales transactions.
8. Select the Account type for this tax rate (usually it will be Liability. If in doubt, please consult with your accountant).
9. In the "Show tax amount on return line" dropbox, select the "Tax collected on Sales" option. The options that you see may be worded differently depending on the agency you are creating the rate under.
10. In the "Show net amount on return line" drop box, select the "Taxable Sales Amount" option. The options that you see may be worded differently depending on the agency you are creating the rate under.
11. Similarly for Purchase transactions, enter the tax rate.
12. Select the Account type for this tax rate (usually it will be Liability. If in doubt, please consult with your accountant). Please note that in the case of agencies where purchase tax is not reclaimable, this account type will be set to Expense by default
13. In the "Show tax amount on return line" dropbox, select the "Tax paid on Purchases" option. The options that you see may be worded differently depending on the agency you are creating the rate under.
14. In the "Show net amount on return line" dropbox, select the "Taxable Purchase Amount" option. The options that you see may be worded differently depending on the agency you are creating the rate under.
15. Click Save.

A new tax rate will get created under the Tax Agency you had selected while creating this custom rate. You can see the details of this new rate by clicking the Edit <Tax Agency Name> - Edit rates button in the Tax Centre. E.g. Edit VAT - Edit rates.

QuickBooks automatically do the tax calculations for you on your invoices and receipts for easy and accurate filings. Then, it lets you know when your tax payment is due, so you can file on time and avoid extra fees. To set it up please read this article: Set Up and Use tax in QuickBooks Online.

I've got these help articles that can guide you with your taxes.

Please touch base if you need more information about your VAT taxes. We're here to help you all the time.