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M
Mark Berry
September 10, 2022
Question

VAT on Estimates

  • September 10, 2022
  • 1 reply
  • 0 views

We are a vretail business, so prices before VAT (net prices) are irrelevant to our customers. How can I get the value under the "Amount" column on my estimates to include VAT for individual line items? QBO only adds VAT to the subtotal at the bottom, which is useless as the quote may be a list of options that the customer can choose from, so the total is meaningless.

1 reply

L
LeizylM
September 10, 2022

Hi there, Mark Berry. 

 

I'm here to provide some insights on how VAT works in QuickBooks Online (QBO).

 

The option to get the value under the "Amount" column on estimates to include VAT for individual line items isn't available in QuickBooks Online. However, you can change the default tax rate when creating an estimate.

 

Here's how:

 

  1. Click the Gear icon in the upper-right corner and select Account and Settings.
  2. Select the Advanced tab and go to the Accounting section.
  3. Choose Inclusive of Tax in the Default tax rate selection field.
  4. Select Save and Done.

 

I'm including a screenshot below for visual reference:

 

 

I'm also providing an article to learn more about how you can customize your invoices, estimates, and sales receipts: Customise invoices, estimates, and sales receipts in QuickBooks Online. 

 

Keep your post coming if you need more help with your sales and tax entries in QBO. I'm more than happy to help. Wishing you a good one!

M
Mark BerryAuthor
September 12, 2022

Thanks, but I don't see how any of that helps?

 

Obviously when looking at my transactions, reports etc I want amounts to be net so I can see the true health of my business; we're talking here about what my customers see, and anyway, changing the default tax rate doesn't change how amounts are displayed on estimates - they are always net no matter what I do.

 

Customising my invoices doesn't help if there's no field for gross amount. I already have them customised.

 

I think this is another example of Intuit not thinking about how their software will actually be used in the real world. Why would any retail business in the UK want customers to see the price before VAT?

 

"Section 65 of the VAT Act requires that all prices advertised or quoted in respect of a taxable supply of goods or services must include VAT, or alternatively, that the advertisement or quotation must reflect the VAT cost, the VAT exclusive price and the VAT inclusive price."

 

While QBO complies with this at the totals stage of the estimate, often a quote will be a list of available alternatives or options, so the total is meaningless, and to be compliant a quote must show the gross amount for each option.

 

The only workaround I can find is to make the VAT rate zero, and then enter the gross amount for each line, but that then messes up both my net estimate totals, and my bookkeeping when the quote turns into an order.

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