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September 29, 2020
Question

We are a Kenyan business and would like to have the option of including VAT tax on expenses. Kindly guide me on how to go about it.

  • September 29, 2020
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1 reply

AlcaeusF
September 29, 2020

Welcome to the Community, @nicaboge.

 

QuickBooks Online (QBO) can automatically track your sales tax for you through the Tax feature. To include a VAT in your expenses, all you need to do is to turn it on.

 

Here's how:

 

  1. Go to the Taxes menu at the left pane to get to the VAT page.
  2. Select Set up tax and enter the tax agency details.
  3. Click Next, then follow the steps to finish the setup.
  4. Hit Done.

 

After that, here's how to add tax rates:

 

  1. In the VAT page, tick Add Tax
  2. Enter the necessary information and choose Save.

 

Once done, you can now add VAT to your expense transactions. Please refer to these steps:

 

  1. Go to the + New option at the top left to create an Expense
  2. Click the Amount are the drop-down arrow.
  3. Select either Exclusive of Tax or Inclusive of Tax.
  4. Enter the amount under the TAX column.
  5. Hit Save.

 

If you want to deactivate or add group taxes in the future, check out this article: How do I set up sales GST/VAT rates and use them on forms? (International QBO).

 

To see some frequently asked questions about the feature, refer to this article: VAT Feature Update FAQ.

 

Please let me know if you have any other questions or concerns in the comment section below. I'm always here to help. Have a good one!