Recently, QBO defaults our customers to 'No VAT' sales tax. Prior to about 6 weeks ago, it usually defaulted to 20% - how do I change the default?

I know how the changes in the default sales tax rate will impact your business processes, @Siobhan11.

I'm here to share some details to help you get back to business and set the default rate back to 20% in QuickBooks Online (QBO).

To set the default tax rate to 20%, you can simply change the Default Tax Rate Selection to Inclusive of Tax so that your customers will be included in the tax. Then, review your customers to verify if their tax code is set to 20%.

To make it default, follow the steps below:

1. Go to the Gear Icon or Settings, and select Account and Settings.
2. In the Advanced column, select the Edit or pencil icon in the Accounting section.
3. Choose Inclusive of Tax from the Default tax rate selection dropdown button.
4. Select Save and click Done.

Once done, review your customers to ensure their tax code is set to 20%. Follow these steps to do so:

1. Go to the left navigation panel and select Sales.
2. In the Customers section, select a customer for verification.
3. In the customer interface, select Edit.
4. Scroll down, and click the Assign Default Tax Code.
5. Change the Default Tax Code to 20%.
6. Once done, select Save.

I'll add this article to learn how to record, adjust, and delete VAT payments in the tax center: Manage VAT payments.

If you have further concerns about managing the tax rate, please tag me in the comment section, @Siobhan11. I'll assist you in any way possible.