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.
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
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.
Go to the Lists menu and click Item List.
Click Item at the bottom of the list and click New.
Click the Type drop-down list and choose Sales Tax Group.
Enter a name for the group.
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"
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.
fills in the rate, tax agency, and
description of the single tax you have selected.
Repeat step 7 until you've added all of the sales tax items
to the group.
How does QuickBooks calculate sales tax for a sales tax group item?
Charge sales tax