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Hi - I have single payments which cover off a number of items with different VAT rates. How do I allow for this in QuickBooks as it only seems to allow 1 VAT rate?

Forum|Forum|6 years ago
November 8, 2019
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QuickBooks Online

Best answer by emmam6

Good to have you back, chrissmith.

I can route you to our phone support team. They'll be able to assist you further with your concern.

Here's how to contact them:

Select the Help icon at the upper right.
Click Contact Us.
Enter different VAT rates as your concern, then click Let's talk.
Select Get a callback.

If you have more questions, don't hesitate to post them anytime here.

Hello Community Uers, Just wanted to add some clarification onto this thread for any visitors. Using the example given on this thread

Drink - £2
Food - £5
Book - £10
Bill - £15.00 (net), £2.00 VAT, Total £17.00

And this has been paid as one single transaction where the VAT is not against every line item and therefore the individual rates are unknown.

If you do not know which items the VAT applies to/what should be Vatable on your expenses, that is something we can't advise you on it is worth looking at HMRC for that information. You would need to record the correct VAT https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services. You could also confirm with an accountant.

JaneD

Hi chrissmith,

You can both create a bill or an invoice and enter multiple items with different VAT codes. Then, apply the payment from there.

Let me show you how:

Sign in to QuickBooks Online (QBO).
From the Plus (+) icon, choose Invoice under Customers.
Choose the customer's name and set the Invoice date field.
In the Amounts are drop down, choose Inclusive of Tax.
Under Product/Service, select all items and enter the VAT code in the VAT column.
Once done, click on Save and close.

See the Create an invoice article for further guidance.

To enter a bill, check out this link: How to enter and pay bills.

I'm also sharing some of our great resources that will help you in the future:

If you have any follow-ups or other concerns, just let me know by leaving a comment below. I'll be here to help. Have a wonderful day.

C

chrissmithAuthor

Thanks for the help. As a follow up - what should I do if the receipt/invoice has multiple individual entries, but only one number for vat (ie I don’t know which vat rate applies to what line). How do you account for that using quickbooks? Many thanks again.

Adrian_A

Thanks for coming back to the Community, chrissmith

In QuickBooks, you’ll have to manually enter the VAT for the specific item. If you don’t know what rate applies to it, you can use the default rate.

If the item is not subjected to VAT, then you can select the No VAT option under the VAT column.

Please follow the steps provided by my colleague to select a rate.

Feel free to browse the articles shared above about VAT.

I'm just a post away if you still need my help. Thanks!

Angelyn_T

Hello, @chrissmith.

If you mean that the amount of the items are inclusive of tax, the rate usually depends on the VAT you've selected under the VAT column. You actually view the rates under the Subtotal section or by pulling up the transaction journal by clicking on More and selecting Transaction journal on the Invoice page.

You can see these screenshots for additional reference.