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Experienced Member

Setting up Tennessee Use tax on cost of item only.

We are required to pay use tax on the cost of the items we sell as a water treatment systems company.  How is it set up?  If a customer buys water filters we collect sales tax.  On the water treatment systems we are required to collect only use tax on the cost of the system not the sales price.  How do I set this up so I can print invoices from QuickBooks?


Mary Ann

1 Comment
QuickBooks Team

Re: Setting up Tennessee Use tax on cost of item only.

Hello, @taxpromary.


I can help share some information about sales tax on purchases from vendors. 


In QuickBooks Desktop, you can't track sales tax automatically on non-sales transactions, you'll need to manually track this as an expense or liability. To learn more about how to keep an accurate record for this taxes, please refer to this article: Track sales tax on purchases from vendors.


This article covers the usual sales tax workflow in QuickBooks.


If you need further help in going through the steps, please feel free to contact our Desktop Care Support so they can pull up your account in a secure environment.


Here's how you can reach them:


  1. Go to:
  2. Choose your QuickBooks Product.
  3. Select your QuickBooks Version.
  4. On the Contact Us page, click a topic.
  5. Click on the Get Phone Number button to see the support number.

This will get you on the right track. I'll also be here to help if you have additional questions about the use tax. Have a good one.