VAT Changes For Quickbooks

If you are a Quickbooks user, please follow these steps to amend your VAT codes to implement the change back to 17.5% from 1st January 2010.

Step 1: From the top menu, click on "Lists" and then open "Item List". Scroll to the bottom of the list and find the VAT items.

Step 2: Select the item "VAT on purchase" (this will be followed with either 17.5% or 15%). Click on the "Item" button at the bottom of the screen and select "Edit Item".

Step 3: Ensure the "VAT Item Name" and "VAT Item Description" denote "VAT on purchase 17.5%". Amend the "VAT rate %" to 17.5%. Ensure the item is assigned to VAT return boxes 4 and 7" and click "OK".

Step 4: Repeat for the VAT item titled "VAT on sales" (again followed by either 15% or 17.5%).

Step 5: Repeat as before for "EC Purch Goods Standard" and "Reverse Charge Purch Standard"

Step 6: If you still have "old" VAT items from December 2008 when the rate changed to 15%, then these will need to be reversed from 17.5% back to 15% by editing the VAT item as described above. If not, you will need to create 2 new VAT items, one for 15% sales VAT, the other for 15% purchases VAT. Click on the item button at the bottom of the screen and select "New".

Step 7: Select "VAT Item" from the initial drop down box. Choose the VAT item name and decription to denote 15% VAT on either purchases or sales (as appropriate). Enter a VAT Rate of "15%" and select HM Customs as the agency. Finally, in the last box, choose boxes 1 & 6 for VAT on sales and boxes 2 & 7 for VAT on Purchases. Select "OK" and then repeat for whichever of VAT on Sales or Purchases is still to be added.

Step 8: The final step in adding a new code for the old 15% VAT rate is to select "VAT Code List" from the drop down "Lists" menu. Choose a code and description to make the entry relevant to you e.g. "old" and "VAT at 15%. Tick the box to denote "Taxable" and select the relevant VAT items for purchases and sales which you just created above.

If this makes you feel uneasy, we have an alternative solution. Simply produce a Quickbooks backup file, give us a call on 01865 - 821100 and we'll make the change for you for a fixed fee of £95 + VAT. We will also aim to have the file back with you the same day.