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csacs101
Level 2
posted
‎April 22, 2025 04:37 AM
last updated ‎April 22, 2025 4:37 AM

New VAT rate

Hi,

The new VAT rate comes into effect 1 May.

Some of our customers are invoiced monthly in arrears, usually 3 to 4 days after month end. Our other customers get invoiced daily, so I will need to apply the new rate from the 1st, but then invoice some at the old rate 3 or 4 days later.

 

Quikbooks says the following:

  • To edit VAT rates:

    1. Go to VAT.
    2. Select Edit VAT and then Edit rates.
    3. In the tax rate table, choose the rate you want to change and select Edit.
      Note: You will not be able to edit any QuickBooks Online default tax rates.
    4. In the Edit tax rate window, change the rate. You can also change the name if you like.
    5. Set the Effective date, if required, this will be the date from which the rate change will take effect, then Save.
    6. Select On or Off  beside the tax rate you want to make active or inactive.

 

Is Quickbooks going to automatically update the default tax rate and effective date so that the date of the invoice determines the VAT applied or do I need to do something myself to sort it out?

 

Thanks

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1 Comment 1
NicoleAscencionS
Moderator
Moderator
‎April 22, 2025 05:48 AM

New VAT rate

Yes, QuickBooks Online (QBO) will automatically update the adjusted VAT rate, csacs101. Let me share some more insights regarding this matter.

 

To start with, QBO complies with the regulations set by your tax agency. Please note that the updated VAT rate of 15.5% will become effective on May 1, 2025. Following this change, the system will be updated promptly to reflect this change accurately.

 

Furthermore, the system will automatically apply the new VAT rate to all invoices created from that date onward, eliminating the need for you to manually adjust the rates on your invoices.

 

Additionally, you can visit this article for guidance in handling VAT transactions and other tasks in the tax center: Manage VAT payments in QuickBooks Online.

 

We're here to help ensure your smooth transition to the new VAT rate and support your ongoing financial management needs. If you have follow-up questions about QuickBooks, you can always revisit this thread.

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