Depending on where you do business, you may be required to collect sales
tax for the products or services you sell. If you collect sales tax, you must pay it to a tax agency on a regular schedule. QuickBooks helps automate
your sales tax tracking so you can keep accurate records about the sales taxes
you collect and pay.
Important: You must follow the
rules and regulations for collecting and paying sales tax in your tax district
(city, county, state). Help me find this information.
The following information is important for setting up your sales tax.
Track taxable and non-taxable sales using sales tax codes
Use sales tax items and rates to charge
Quick reference to QuickBooks sales tax terminology
View a picture of the sales tax workflow
Set up sales tax in QuickBooks
You'll set up your sales tax items with rates and the tax agencies to pay, assign taxable or non-taxable status to your items and customers, and set up a payment schedule.
Enter an opening balance for your sales tax payable account
If you have sales tax that you currently owe to your tax agency, you need to enter that balance in the sales tax
payable account where your sales tax is tracked.
Charge sales tax when you make a sale
Once your sales tax information is set up, sales tax is automatically added to your invoice, sales receipt,
or other sales forms. QuickBooks does the calculations for you.
Pay your tax agency
You can run a sales tax liability report to track what you owe, then pay the
sales tax when it's due.