How do I enter an item paid that has VAT on it? eg £36 (£30 + VAT)

Greetings, michaelgrove.

Thanks for joining the Online Community. I’ll help guide you, so you can properly enter an item with VAT.

If you haven’t created the product/list yet, please follow these steps.

1. Go to the Gear icon at the top, then select Products and Services.
2. In the Products and Services window, select New.
3. Choose the product or service type.
4. Fill in the fields.
5. Click on Save.

You'll find more information about adding an item in QuickBooks via this link: Products and services list. 

Then, set up the tax in your account. For detailed instructions, follow the steps in this link:

• Set up VAT
• Common VAT Codes

Once done, you can now use the newly created item to track the transaction. Let me walk you through the detailed steps.

1. Click on the Plus icon at the top, then select Invoice.
2. Enter the customer’s name and email address.
3. Select the correct Service Date.
4. Under Product/Service, choose the item.
5. Fill in Qty field.
6. Under Rate, enter £30.
7. In the VAT column, choose 20.0 %.
8. Click on the drop-down for Amounts are and select Exclusive of Tax.
9. Click on Save.

With these steps, your sales records should show the correct details.

If you have further questions about the process, post a comment below. I'll be right to answer them. Have a great rest of your day.