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lukas11
August 6, 2020
Question

5% EC Goods Reduced VAT rate

  • August 6, 2020
  • 1 reply
  • 0 views

Due to COVID-19 the UK government has reduced the VAT rate on some purchases, e.g. restaurants. I understand this would also have to be applied to purchases from EC Member States. There is a 20% "EC Goods" VAT rate and also a 0% "EC Goods Zero-rated" VAT rate. There is no 5% "EC Goods Reduced" VAT rate for e.g. currently having a business dinner at a German restaurant. How can I create this? Thank you

1 reply

MariaSoledadG
MariaSoledadG
August 6, 2020

Creating a VAT rate is very easy, lukas.

 

You'll have to set up an additional tax rate for the 5% "EC Good Reduced". 

 

Here's how:

  1. Go to Taxes.
  2. Select Add Tax.
  3. Select the type of tax you want to add.
    • Tax rate: add another tax rate for VAT, such as a local tax that is not already included.
    • Group rate: combine multiple taxes and make applying them to your transactions easier. All taxes you include are calculated and charged at once, but we track them separately for you.
    • Custom tax: add a tax agency and a tax percentage, such as an environmental levy, hotel, or petrol tax.
  4. Click Save.

Please read this article for the detailed steps: Set Up And Edit VAT Settings, VAT Codes, and VAT Rates. 

 

For future reference, you can also run reports in QuickBooks Online to get the information you need for your business. 

 

Keep in touch if you need anything else. I'll be right here to assist you.

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