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Set up a sales tax group item

In many states, you need to charge a combination of local, county, and state sales taxes on your sales. However, most customers are used to seeing only one sales tax line and rate on their sales receipts, invoices, etc. You can accommodate both these needs in QuickBooks by setting up and using a sales tax group item.

Example
For example, you might be required to charge a 7% sales tax for the state and a 2.5% sales tax for the county where you do business. If you are paying multiple agencies, rather than making one payment that will be split by the principal agency, you can group these two sales tax rates together and charge one rate of 9.5%.

A sales tax group item is two or more sales tax items that you apply to a sale at the same time, using one combined sales tax rate. This allows you to track and report sales taxes separately for your tax returns, but show them as a single line item for your customers. If you use several sales tax group items, such as combining the same state tax with several different local or county taxes, you can set up as many sales tax group items as you need.

To do this task

  1. Make sure you have already set up all of the single (flat rate) sales tax items you will need to set up the sales tax group item.

  2. Go to the Lists menu and click Item List. Shortcut

  3. Click Item at the bottom of the list and click New.

  4. Click the Type drop-down list and choose Sales Tax Group.

  5. Enter a name for the group.

  6. Enter a description to print on your sales forms after the final line item. You cannot edit the description on the forms themselves. The group rate (total of the combined sales tax item rates) also prints on the sales form. You might use something as simple as "Sales tax"

    .
  7. Click the Tax Item drop-down list, choose the first sales tax item you want to include in this sales tax group, and then press Tab.

    QuickBooks fills in the rate, tax agency, and description of the single tax you have selected.

  8. Repeat step 7 until you've added all of the sales tax items to the group.

  9. Click OK.

See also

KB ID# H_SALES_TAX_TASK_SETUP_SALES_TAX_GROUP_ITEM
9/25/2016 8:42:21 AM
PPRDQSSWS406 9138 Pro 2017 3d4fd4