How to Collect and Track Sales Tax in QuickBooks

How to Collect and Track Sales Tax in QuickBooks

How to Collect and Track Sales Tax in QuickBooks

Quickbooks Helpful Tips

Looking to track and collect sales tax in QuickBooks? You’ll need to enable it and set it up.

Click “Edit,” then “Preferences,” then “Company Preferences” tab, and finally, the “Sales Tax” submenu. Within that submenu, you will find an option that asks if you charge sales tax. Select “yes.”

Once this preference is set, there are still a few other options to consider.

You need to set and configure:

  • Sales tax codes to specify where a customer or item is taxable
  • Sales tax items to specify if the sales tax is applicable to a customer or invoice
  • Sales tax groups to combine multiple sales tax items into a combined set rate for the customer or invoice

The above are all changes you can make within the preference tab. However, in order to start collecting sales tax, you need to create at least one sales tax item. After you create it, you will be given an option to change the tax status of all existing customers or all inventory/non-inventory parts of your business. Both options allow you to change the tax status for all of your customers or only for parts that require sales tax. You can also individually customize each business from the preferences on their page.

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