Tracking VAT Rate Paid to Your Supplier
You can track supplier paid VAT rate easily through Houzz Pro and QuickBooks. If you've purchased items from your supplier or a retail store and have been charged VAT, and now you need to mark up those items and resell them to your client, we'll show you the best way to handle this.
Houzz Pro allows you to mark items on a purchase order as VAT applicable. However, VAT applicable items on a purchase order syncing from Houzz Pro to QuickBooks do not appear as VAT applicable on the purchase order/supplier bill in QuickBooks, and that VAT is not registered on the QuickBooks reports.
How do I track VAT rate that was paid to the supplier at purchase?
When creating your purchase order in Houzz Pro simply mark the appropriate items VAT applicable in the VAT Applicable column (if you don't see this column, click the Customise button to enable it). Please verify the VAT rate charged and adjust this rate if needed in the VAT Rate column. The purchase order in QuickBooks will have synced with a line item for VAT Rate that will show the total VAT amount from the purchase order.
When your purchase order is marked as “billed” or marked billed and paid, the supplier bill in Quickbooks will also show the supplier VAT line item. That amount will appear in its own cost of goods sold account, visible on your profit and loss statement. By default this will go to the cost of goods sold account “Houzz Pro Sales Tax Paid to Vendor.” You can find your VAT mappings in your Houzz Pro QuickBooks Account Settings under Supplier Paid VAT Mapping – read this article to learn more.
How do I handle invoicing my client and charging VAT rate when I've already paid VAT to my supplier?
We recommend reaching out to your accountant or HMRC to find out how to handle prepaid VAT when you are invoicing your clients.