Vat Jan 2011 @20%. in QB 2010 & QB 2008
20% Vat from January 4th 2011. for QB 2008 scroll down to that post.
For those of you wanting to know how to change their Vat system in QB 2010 to be ready for the change to 20% Vat in January I offer this simple guide.
1. Open Item list, scroll to Vat item's, choose your Standard Vat Item used @17.5%; I use Standard Sales in this example.
2. Right click on Standard Sales; and choose duplicate item, an edit window will open with the item ready for editing.
3. Edit name "I choose 20% Standard Sales". (You can call it what you like).
4. Edit description to include the 20%
5. Edit the rate to be 20.0%. do not change anything else; Save.
6. Repeat this for your standard purchase Vat Item
7. Go to Vat menu and Vat codes List.
8. Right mouse click in the Vat code list window and select New.
9. For Vat code I used S20 again you can use what you want but you are limited to three characters.
10 . Enter Description I choose S20, again its your choice of Description.
11. Tick the Taxable box and then select the two Vat items you just created above one for Sales & One for Purchases. Save
You have now converted the Vat system to Handle 20% Vat select this code for anything you have to enter data for dates after 4th January 2011. and on January 4th "011 if you are back at work by then.
From edit preferences>Vat ; select the default standard vat rate as S20.(or what ever you decided to call it).
From here you will need to Assign Vat from the Manage Vat Menu and then using Bulk Change button you can change all your Items & Supplier/Customer codes if used.
If you are using EC codes then you will need to do this for each of the EC codes where currently 17.5% is used. Creating a new Group if required from the new Items.
