Set up and edit VAT settings, VAT codes |VAT Infoseed Computers LLC

This article is for all UK VAT-registered businesses who are using QuickBooks to calculate and submit VAT to HMRC.

Set up VAT

To manage your VAT process, you will need to set it up in the VAT Centre. To access the VAT Centre, start by clicking on VAT on the left navigation. Setup VAT by entering a VAT Registration number, the month the current period begins, VAT accounting scheme and filing frequency. Once that is done, you are ready to file your VAT. You can always edit your VAT settings after your setup.

To set up your company file to account for VAT, follow these steps:

  • Click on Taxes on the left menu, then the Set up VAT button.
  • On the Set up VAT page, select the beginning month of your current VAT period.
  • Select your filing frequency.
  • Next, choose your VAT accounting scheme.
  • Standard - also known as accrual, select this option if you count your income when you invoice your customer
  • Cash - select this option if you count your income when you receive money from your customer
  • Enter your VAT registration number.
  • Tick the checkbox for Flat Rate Scheme (FRS), if your business is entitled to this.​
  • Click Save when you're ready. Your VAT codes will now be automatically set up.

Editing your VAT Settings, Codes and Rates

  • Click on Taxes on the left menu.
  • Click the drop-down arrow next to Edit VAT and then choose Edit Settings or Edit Rates.

Edit Settings allows you to to make corrections to your VAT registration number, changes to your filing frequency, (for example move from monthly to quarterly), or simply to amend your VAT accounting scheme from a cash basis to the accrual basis.

Edit Rates allows you to amend some, not all the percentage rates for particular VAT codes. You would not be able to alter the standard rates for sales and purchases. You can amend the rate of percentage for reduced sales and purchase tax. A drop-down rate history shows the different rates used.

Add additional tax rate, group rate or custom tax

To set up additional tax rate, group rate or custom tax to your company, follow the steps below.

  1. Click on Taxes on the left menu.
  2. Click Add Tax.
  3. Select the type of tax you want to add.
    •  Tax rate - to add another tax rate for VAT, such as a local tax that is not already included.
    • Group rate - to combine multiple taxes and make applying them to your transactions easier. All taxes you include are calculated and charged at once, but we track them separately for you.
    • Custom tax - add a tax agency and a tax percentage, such as an environmental levy, hotel or petrol tax.
      Click Save.

From April 2019, all eligible UK VAT-registered businesses will have to keep their financial records in a digital form and submit their VAT returns using approved software.

If you are eligible, you'll have to authorise QuickBooks to interact with HMRC. You can choose to do so now, or later, as long as it is completed before submitting your VAT return.