In the custom VAT rate section, I have created a 100% VAT rate to help with import invoices.
When I use this rate in my expenses it is actually 50% ?
To be honest, I am really tired of having to split an invoice using 3 lines because Quickbooks cannot properly deal with multi-VAT rated invoices. Surely 100% VAT rate is a simple solution so why isn't it working? Just wasted 1 hour messing around!
Glad to have you back here in the Community, @Alexis8.
I'd like to ensure that you can create and apply a 100% custom vat rate successfully to your transactions in QuickBooks Online.
To get this issue sorted out, I recommend performing the steps shared by Anonymous, which is to access your account in a private window. Then clear its cache to see if it works fine.
If the problem continues, I suggest inactivating and recreating the VAT rate that you made.
To eliminate the rate:
After that, create the vat code again by following the steps found in this link: How to create an additional VAT code unique to your company.
If doing this doesn't make a difference, I recommend contacting our Customer Care Team. They have the necessary tools that can help determine the reason behind this issue and will give you a fix.
Lastly, I'd like to share this link reference to contains details about everything that you need to know concerning VAT in QuickBooks Online: VAT for QuickBooks Online UK.
Let me know if you have any other questions about this topic or anything QuickBooks related. I'm always here to help. Have a wonderful and productive week! Take care.
Make sure you did not create a VAT 100% transaction and then left the option "inclusive of tax".
this will make the VAT 50% of the total amount since you informed the system the VAT is part of the total amount that you entered by selecting "inclusive of VAT".
Nonetheless, Custom VAT codes will not be accepted into the VAT submission.
To raise a VAT 100% transaction:
1st-Click on the (+) icon and select the transaction type that you need. Bill/expense for money out or a sales receipt/invoice for money in.
2nd-On the first line transaction, choose the Item/category you want to use. For the rate, enter £0.01, and for the VAT code, select the 20% Standard code.
3rd-On the second line, select the same item/rate. For the rate, enter -£0.01, and choose an Exempt code.
4th-The total of the invoice will be 0. On the bottom, you will be able to enter the value of the VAT you Paid or will claim on the VAT 20% total.
5th-Enter the correct date and Bank account that you want to use on this transaction.
6th-Save.
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