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1 reply

QuickBooks Team
October 7, 2025

Welcome to the community, Sonny. Let's work together to manage VAT rates for purchases in QuickBooks Online (QBO).

 

If you've already set up a VAT rate in QBO, it's best to deactivate it and create a new one, as existing rates might not have the option to edit the tax to show up in purchases. Once done, you can go to the Taxes page and tick the checkbox for "This tax is collected on purchases" to make it appear in purchases.

 

To do this, here's how:

 

1. Go to the Taxes page and select Add tax.
2. Choose Custom tax, then provide all the necessary information.
3. Tick This tax is collected on purchases checkbox, and This tax is collected on sales.
4. Enter the rates. Once done, click Save.

 

Feel free to visit this article for more information regarding setting up and using sales tax in QuickBooks Online, as well as guidance on how to deactivate tax rates.

 

Let us know if you have any questions about setting up VAT rates for purchases. We're always here to help. Have a good one.