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markatmakinity
March 23, 2021
Question

Multiple VAT Tax

  • March 23, 2021
  • 1 reply
  • 0 views

Hello,

Our company is based in Ireland. We normally are not invoicing for VAT as we are a trade company that trades internationally and so no VAT. (Any different opinions?)

We have just paid a supplier in Spain for some work and they included Spanish VAT on their invoice as the work is to be performed in Spain. Should I set up Spanish VAT in QBO to address this amount that we paid?

Also, we are beginning to do a consulting project for a company in Spain and will be invoicing them for the work over the next 6 months. I assume we should invoice with VAT (Spain) included. Do I need to set up Spanish VAT in QBO to address the amount we will invoice for VAT?

Thank you.

1 reply

Rubielyn_J
Rubielyn_J
March 23, 2021

It's good to see you here, @markatmakinity.

 

Let me provide few details about VAT rates in QuickBooks. The number of tax codes and rates used to track the items depends on which region the business is located. 

 

Since you're using QuickBooks Online in Ireland, a default set of GST/VAT codes is automatically created for you. These represent the most commonly-used GST/VAT rates and you can also add additional tax rates.

 

If you want to add another rate, ensure to turn on tax tracking. Here's how: 

 

  1. Log in to your account.
  2. Go to the Taxes menu on the left menu and then choose Set up tax.
  3. Set up the tax agency details such as the name of your tax agency, any official tax number, your reporting method, how often you file your tax to your tax agency, and whether this tax is meant for sales or purchases, then select Next.
  4. Follow the steps to finish the setup and click Ok.

 

Then, create additional tax rates:

  1. In the Tax Centre, choose Add Tax.
  2. Select which type of tax rate you want to set up.
  3. Enter the details of your tax rate. If you need help with this screen, select the help button (yellow question mark).
  4. Click Save when finished.

 

For more details, feel free to review this article: How do I set up sales GST/VAT rates and use them on forms?.

 

Additionally, here are some guidelines to help you apply sales tax to sales forms in QuickBooks.

 

Just leave another reply if you need more help with VAT in QuickBooks. I'll be around to help you. Keep safe and good day.

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