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