How to Set Up Sales Tax in QuickBooks Online?

Posted by Linda on December 4th, 2019

In QuickBooks, you have got the opportunity to collect and pay sales tax on behalf of governmental authorities. QuickBooks sales tax handles taxes for the particular Goods and services. This will help you to retain to manage taxes in one place. The collection of taxes for services and goods becomes certain and to ensure accurate calculation and report, the tax feature comes in handy. It doesn’t require any type of manual work and makes the job easier for business owners and accountants.

The blog will guide you firstly about enabling sales tax in QuickBooks Online, then we will discuss how to set up sales tax in QuickBooks online. Let’s learn the process of enabling sales tax in QuickBooks Online.

Enable Sales Tax within QuickBooks Online

Go- through the steps to enable sales tax within QuickBooks Online:

• To begin with, in the left-hand navigation, you need to choose Taxes. With this, the Sales Tax Center appears on the system screen.
• After that, in case you haven’t set up sales tax rates, click the Set Up Sales Tax button or you can Edit sales tax settings link.
• Finally, QuickBooks will guide you for setting up a new sales tax rate. You need to make certain that the tax you are creating is matching the name and rate of the tax that are using in point of sale system.

Now, let’s discuss how to set up tax in QuickBooks Online. Before you handle any sales work, you should know how to set up sale tax in online.

How to Set Up Sales Tax in QuickBooks Online?

After enabling Sales Tax in preferences, to create a sales tax item in your data file, follow these steps:

• To start with, you have to choose lists, from the menu bar, item list.
• Now, in the item drop-down list, choose New to open the New Item dialog box.
• You have to choose sales tax item, in the Type drop-down list.
• Afterwards, you have to add a sales tax name for the sales tax item.
• Add a description which you want to be printed on the customer’s invoice.
• Now, you have to add the rate which the tax authority charges, in the tax rate box.
• Choose the vendor to which you remit the sales tax payments, in the Tax Agency drop-down list. In case your vendor is not set up in QuickBooks, choose Add New for creating a sales tax vendor record.
• In the end, click OK for saving the sales tax item.

These are the steps which needs to be performed to set up sales tax in QuickBooks Online.

Conclusion

So far, the blog has covered what is QuickBooks Sales tax, the method to enable sales tax in QuickBooks, and how to set up sales tax in QuickBooks online. QuickBooks sales tax create as well as access sales report, record tax payments, add sales tax rate, etc.

If you want to know the additional benefits of making QuickBooks sales tax report, then you can dial the QuickBooks support phone number 1-877-263-2742.

Reference Source: https://medium.com/@johntrump524/how-to-set-up-sales-tax-in-quickbooks-online-39b33951334b