I created a sale order in USD but the VAT line is displaying the amount in the home currency instead of USD. How can this be corrected.

To show VAT in USD within QuickBooks, create a custom service item and use it on transactions. The default VAT line only uses your home currency and can't be set to foreign currencies.

First, create a custom service item that directs funds to your tax-tracking account instead of your regular income. Here’s how:

1. Click the Gear icon, then select Products and services.
2. Select New, then choose Service.
3. Name the item clearly, such as "VAT 15% (USD Display)" or "Manual VAT Tracking".
4. In the Income account dropdown, select your VAT Liability (or Tax Payable) balance sheet account instead of an income account to route funds directly to your liability ledger.
5. Leave Price/rate blank, then click Save and close.

Next, open your USD sales order and set the Tax to Out of Scope or Exempt so the automatic tax calculation shows $0.00.

Now, manually add the tax line:

1. In the product or service list, add a new line item.
2. Select your newly created VAT liability service item.
3. Manually calculate the VAT in USD (Subtotal × 0.15) and enter that amount in the Rate/Amount column.
4. Click Save and close.

For accuracy and compliance, I recommend consulting your accountant before posting the transaction.

To learn more, check this article: Set up and use Multicurrency in QuickBooks Online.

Should you have any questions or need clarification, please let us know below. We’re here to help.