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Add a sales tax category to products and services in QuickBooks Online

SOLVEDby QuickBooks61Updated 2 weeks ago

Learn how to add a sales tax category to your products and services in QuickBooks Online.

Instead of manually calculating sales tax, let QuickBooks do the work for you. Add a sales tax category to your products and services to accurately calculate how much to tax your customers. Here’s how.



Step 1: Set up your sales tax

The rules on how to tax a product or service can change depending on what you sell and where you sell it. QuickBooks keeps track of those tax rules, so you don’t have to.

Here’s how to set up your sales tax so QuickBooks can determine the rules that apply to you.



Step 2: Find out what products or services need a sales tax category

The taxability of a product or service can vary from province to province. Some specific products and services have special or reduced rates and fees.

Important: If you’re still not sure which tax category to assign, ask your accountant for help. They have the best insights into what tax categories your items need. If you don’t have an accountant, we can help find a ProAdvisor near you.



Step 3: Assign a sales tax category to a product or service

When you’re ready, here’s how to assign your items to different sales tax categories.

  1. Go to Sales and select Products & services (Take me there).
  2. Look for the item you want to assign a tax category to, then select Edit.
    Note: If you want to assign a tax category to a new product or service, here's how to add a new inventory item.
  3. Select the Sales tax dropdown menu, then find and choose the specific sales tax that fits your item.
    Complete your item’s info:
  4. Save your item.

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