Sales tax is collected by the retailer when the final sale in the supply chain is reached via a sale to the end consumer. End consumers pay the sales tax on their purchases. Businesses issue resale certificates to their sellers when buying business supplies/inputs that will be resold since sales tax is not due. Tax jurisdictions do not receive the tax revenue until the sale is made to the final consumer.
VAT (Value-Added Tax) is collected by all sellers in each stage of the supply chain. Suppliers, manufacturers, distributors and retailers all collect the value added tax on taxable sales. Suppliers, manufacturers, distributors, retailers and end consumers all pay the VAT on their purchases. Businesses must track and document the VAT they pay on purchases that will be resold in order to receive a credit for the VAT paid on their tax return. Tax jurisdictions receive the tax revenue throughout the entire supply chain as opposed to at the sale to the final consumer chain.
QuickBooks UK takes care of your VAT records and returns, to make it easy for you to comply with all VAT rules. It can handle different VAT rates and schemes, calculates VAT correctly on international transactions – and gives you all the information you need for your VAT return, in minutes.
Customized QuickBooks VAT reports use real-time data to show every aspect of VAT in your business. There’s no need to do manual calculations or rely on guesswork: you get the VAT information you need, when you need it.
One common issue that businesses with operations in different countries face is QuickBooks Conversions, specifically converting QuickBooks Canada to US Edition or UK or US/Canada to UK.
It is likely the case that the company has files set up in a version of QuickBooks that is incompatible with the software in another division. In fact, it is highly likely that specialized software like QuickBooks are available in different editions for different regions such as Canada. In this case, there are features that are specific to that region, for example currency and taxes, that are unique to that version of the software.
One example illustrating this variation is that the Canadian and UK versions of QuickBooks are configured to use VAT, however, this feature is configured as sales tax for the US version. These unique features make it impossible for the US version of QuickBooks to read a file from the Canadian version, and this can cause frustration and undue delays in the accounting process.
E-tech offers a simple solution to modify the nationality of QuickBooks and bring both versions into sync.