OneUp supports both worldwide VAT and U.S. sales tax.
Jump to VAT section
(for a company based outside U.S.A.)
Jump to Sales Tax section
(for a company based in U.S.A.)
VAT Section - for a company based outside U.S.A.
VAT is tracked automatically when you take any action that should result in VAT calculation. This includes main features like Invoices, Expenses, Vendor Bills, Receipts, and credit memos.
At the end of a period, in order to preview or file your VAT, you will need to Close a VAT Period in Accounting > ⚙️ > Closed VAT Periods.
Collected VAT on Sales
Collected VAT is what is applied when you sell goods or services to your customers with Invoices or Sales Receipts. You were given default Collected VAT rates when you created your account. You can view your list of rates for editing with View VAT in the Sales menu.
When adding a product to a sales document like Invoice, Quote, or Sales Order: VAT rates are set as default on your product. If needed you can adjust the VAT rate per line.
You can also set up your customer with a priority VAT that should overwrite the product VAT, if selected in the customer details.
Deductible VAT on Purchases
Deductible VAT is what is applied when you buy goods or services from vendors with Expenses or Vendor Bills. You were given default Deductible VAT rates when you created your account. You can view your list of rates for editing with View VAT in either the Expenses or Purchases menu.
When adding a product to a purchasing document like Vendor Bill or Purchase Order: VAT rates are set as default on your product. You can later specify a different rate per line.
Changing Account VAT Rates and Labels
Your account was given pre-set VAT rates and labels based on the country selected when you created your account.
The VAT label (editable in Company Settings) is what is printed on your sales documents, but you will see the general label "VAT" inside many screens of the application.
updating VAT label in Company Settings under "Sales and Purchase Tax Label"
custom VAT label on a printed sales document
Setting Default VAT for a Product
linking your products to the VAT needed directly affects your sales documents as a default tax setting
Setting Default VAT for a Customer
default sales tax and priority VAT in customer details
Setting VAT on a Sales or Purchase document
The Sales VAT (collected) is set as a default in your sales documents,
but of course you will be able to overwrite your VAT, if needed
Creating a VAT tax rate
In Sales > ⚙️ > Sales Taxes > New Sales Tax, you are able to create a New VAT Rate. To cover sales and purchase taxing (for Non US accounts), you will need to set up a tax for each "side":
Type "Collected" for what you charge to your customers and "Deductible" for what you pay to your vendor.
Fill in the necessary information here: (once for "collected" and a second tax for "deductible")
Accounting Tip:
Let OneUp create a separate accounting accounts for each VAT rate so the VAT will be easier to maintain and reports can be reconciled with less effort.
If you don’t want to show any VAT on your documents
You can disable VAT completely from Company Settings.
If you wish to suppress VAT from a single document, please select “--” as your VAT rate in the sales or purchase lines. No VAT label and no VAT rate will then appear on printouts.
Why is my VAT rate not showing in the expenses, when I want to select the rate?
Please note that you need to create two VAT rates, one will be used in sales documents (type “collected”) and one will be used in purchase documents and expenses (type “deductible”). Should your VAT not show in the selection list in an expense, you most probably need to add the missing VAT rate for type “deductible”.
So, if the rate you need does not show, it might not have been created yet in View VAT.
Previewing Period
Before you close any period, you have the possibility to check your tax report.
Go to Reports > VAT/Sales Tax Reports and the suggested period for the closing is shown. In “Show Filters” you can change the period that you wish to close.
Below, you see your various tax rates split by rate and collected vs deducted. You can click into each rate to see the invoices, expenses, and other documents that are included in this closing. Do not use these numbers to file your VAT return, wait until you have closed the VAT period. If all looks good, you can proceed to closing the tax period.
Closing the VAT Period
Closing the VAT period is a required step prior to filing your tax return. Closing the period ‘locks’ the included transactions so that no changes can be made to make your tax return inaccurate down the road.
You can close the period directly from the VAT report.. just click the overflow button and Close Sales Tax/ VAT Period. You can also access it in the Accounting ‘gear’ ⚙️ menu.
The “Close VAT Period” feature will open with the current date period selected. You can adjust that period, and you also have the option to “Include Unclosed Entries” (recommended). This will take any historic unclosed VAT entries prior to the selected period and include them in the closing.
Click “Close this VAT” period to start the closing. You must verify the following:
• Ensure all items such as invoices, bills, expenses, and payment receipts have been entered for this period.
• Ensure that sufficient proof is entered for each transaction, such as attached receipts.
• Ensure all bank accounts that were used during this period are synced and reconciled.
Viewing Past VAT Reports
In the Reports menu, you can access prior VAT reports. Just click “Show Filters” and choose the period you want under “VAT Period”. You are able to download the report as PDF or Excel, or export a detailed record of the items included in the report
Please note: Once you close the period, you cannot cancel/delete the this transaction. Nevertheless, if you create further transactions for an already closed period, those transactions will be added to the next open tax period for later closing, if you flag the check mark accordingly.
File online with HMRC Making Tax Digital (UK)
OneUp enables filing of VAT returns online directly with HMRC directly within your account.
For more details, see related guide File online with HMRC
Sales Tax Section (U.S.A.)
For US companies, sales tax is the tax you charge on sale of goods to your customers. You set your sales tax rate when you created your account.
Sales tax rates can be created directly from sales documents, like sales orders and invoices (click "Create a new.." in the tax selector. View your list of sales tax for editing with View Sales Taxes.
In the sales document you specify in the header which tax is applicable to this document. In the order lines use the checkboxes in the "Tax" column to include tax on individual lines.
Please note: US purchase tax needs to be registered in bills using the tab "expenses".
US sales tax group
To be able to create a tax group , you must have already created the simple tax rates that need to be included in the group.
Example: .
You create a City tax for 6% tax as a simple tax
You create a State tax for 9% tax as a simple tax
You then create a tax group "City and State" - type "sales tax group tax" and add those two simple tax codes using the add button. The Group Sales tax now shows 15%
In the invoice you then select the taxes needed in the header on top right side in the field "sales tax" to add either the simple tax or the tax group.
Previewing Period
Before you close any period, you have the possibility to check your tax report.
Go to Reports > Sales Tax Reports and the suggested period for the closing is shown. In “Show Filters” you can change the period that you wish to close.
Below, you see your various tax rates split by rate and collected vs deducted. You can cIick into each rate to see the invoices, expenses, and other documents that are included in this closing. Do not use these numbers to file your tax return, wait until you have closed the period. If all looks good, you can proceed to closing the tax period.
Closing the tax Period
Closing the tax period is a required step prior to filing your tax return. Closing the period ‘locks’ the included transactions so that no changes can be made to make your tax return inaccurate down the road.
You can close the period directly from the tax report: just click the overflow button and Close Sales Tax/ VAT Period. You can also access it in the Accounting ‘gear’ menu.
The “Close tax Period” feature will open with the current date period selected. You can adjust that period, and you also have the option to “Include Unclosed Entries” (recommended). This will take any historic unclosed tax entries prior to the selected period and include them in the closing.
Click “Close this tax period" to start the closing. You must verify the following:
• Ensure all items such as invoices, bills, expenses, and payment receipts have been entered for this period.
• Ensure that sufficient proof is entered for each transaction, such as attached receipts.
• Ensure all bank accounts that were used during this period are synced and reconciled.
Viewing Past Tax Reports
In the Reports menu, you can access prior tax reports. Just click “Show Filters” and choose the period you want under “tax Period”. You are able to download the report as PDF or Excel, or export a detailed record of the items included in the report
Please note: Once you close the period, you cannot cancel/delete the this transaction. Nevertheless, if you create further transactions for an already closed period, those transactions will be added to the next open tax period for later closing, if you flag the check mark accordingly.