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July 29, 2020

Let me help you create a VAT account for sales and purchases, chocolatacafe201.

 

The VAT accounts are created upon setting up sales tax and report the sales tax for every transaction. If you are referring to collecting tax on sales and purchases, we can create a Custom tax in QuickBooks Online (QBO).

 

Let me show you how:

 

  1. Go to Taxes on the left menu.
  2. Click the Add tax button.
  3. Choose Custom tax
  4. Enter the information in these fields (Tax name, Description, Tax agency name, Business ID No., Start of current tax period, Filing frequency, and Reporting method.
  5. Place a checkmark for This tax is collected on sales and enter the Sales rate.
  6. Place a checkmark for This tax is collected on purchases and enter the Purchase rate.
  7. Press Save.

I've got articles for more details about setting up VAT rates:

 

Feel free to visit our Tax Helpful Articles page for more insights about managing VAT in your account.

 

Please know that you can always get back to this post if you need anything else in QBO. I'm always here to help. Take care always.