If we change the VAT rate from 16% to new rate of 14% . Will it affect the old invoices ? Or how should one proceed?

Hello, 

As your business evolves, it's important for QuickBooks Online to evolve along with it. Luckily, QBO has the flexibility to easily add new tax rates if needed. I'd be happy to explain how changing your rate from 16% to 14% will impact your transactions. 

Once a tax code has been created, you're unable to adjust the rate on that specific tax. You'll have to make your current tax code inactive, then create a new tax code with the adjusted rate. 

Since you're making a new tax code, this will impact new transactions only, and the adjustment won't apply to previously created transactions. 

To make a sales tax code inactive:

1. Select Taxes from the left menu.
2. Select Sales Tax at the top. (Tip: If you use payroll in QuickBooks Online, you may need to select Sales Tax as opposed to Payroll Tax)
3. Select Manage sales tax.
4. On the Tax agencies tab, locate the tax agency associated with the sales tax rate you wish to make inactive.
5. Select Make inactive in the Actions column next to the rate you wish to make inactive.
6. You'll know the sales tax rate has been deactivated when you see Make active in the Actions column for that sales tax rate.

To create a new sales tax code:

1. Select Taxes from the left menu.
2. Select Sales Tax at the top. (Tip: If you use payroll in QuickBooks Online, you may need to select Sales Tax as opposed to Payroll Tax)
3. Select Manage sales tax.
4. Click Add Tax.

This should help get you back on track. If you have any other questions about how a sales tax change will impact your bookkeeping, please reach out to our tech support team. 

Cheers.