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britannia0305-ou
March 9, 2024
Question

VAT for sales amount in Sales category needs to input VAT rate of the country sell to? If so, it will be consumption tax rate 10%? Or 20% as purchase VAT? Or no VAT?

  • March 9, 2024
  • 1 reply
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I purchase goods in GBP and sell in YEN in Japan.  The price includes consumption tax (no VAT in Japan) but customers may need to pay import consumption tax when receive the product. (Depends on the price) 

VAT for sales amount in Sales category needs to input VAT rate of the country sell to? If so,  it will be consumption tax rate 10%? Or 20% as purchase VAT? Or no VAT?

1 reply

MariaSoledadG
MariaSoledadG
March 9, 2024

Let me provide some information about this, Britannia.

 

The standard VAT rate in the UK for most goods and services is currently 20%. Once you have the correct rate, you can set them up in QuickBooks Online (QBO).

 

 

Since you want to set up a 10% rate which is a consumption tax, I recommend reaching out to your account to double-check what category this tax should fall. This way, this ensure that no issues arises when setting up VAT and there's accuracy of your books and reports.

 

You can check out this complete guide where you'll find list of common VAT codes used: VAT Codes in QuickBooks Online: A Complete Guide.

 

Furthermore, learn how to create and show exceptions in QBO. I've added a screenshot for reference: VAT Exceptions and Reports in QuickBooks Online. 

 

Reply your comment below if you have any questions about VAT. Remember, we're always right here to help you all the time. Have a nice day ahead!

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