How to change Value added tax setting from Expenses to liabilities

We're unable to edit the account type associated with the VAT rate, userahmedsobhi474.

Instead, you can make the VAT inactive and create a new one with the correct account. QuickBooks Online will retain the transactions associated with the old one.

Here's how:

1. In the Tax Centre, use the side arrows to find the tax you want to deactivate.
2. Click on Edit tax in the top right corner.
3. Click on Edit rate.
4. Click the green toggle option.
5. For custom rates - Under Action, click Edit and then click Make inactive.

Please note that you can't have two rates with the same name. To solve this, rename the deactivated rate something else. Then, make a new tax rate with the correct name.

For additional reference about VAT read these articles:

• How do I set up sales GST/VAT rates and use them on forms? (International QBO)
• Applying Sales Tax to Transactions and Sales Forms

If you have other questions about sales tax handling in QuickBooks, don't hesitate to leave a reply.