Compound Tax

Hi Kat_1971,

Tracking your sales tax correctly is imperative to make sure you file the correct amounts with the government. I can help go over how to make compound sales tax codes.

QuickBooks Desktop makes setting up compound sales tax codes a quick process made to help save you time. In QuickBooks Desktop compound sales tax codes are created under the group sales tax option. To set up a group sales tax rate you can follow the steps in this article.

Before using this group sales tax I suggest reaching out to your accountant to make sure it's calculating properly and going to the correct accounts. If you don't have an accountant no worries, we have your back. You can go to our find an accountant page to find one that can help in your area.

Have a great one!

Are we able to set up a compound tax rate for GST on vape sales? QB Online Version

THe GST is calculated on vape sales plus the 20% PST tax.

I never figured out an easy way to have it compound. I created a tax group called vape tax (VST) which charges GST/PST/VPST (25%) then I made an item called GST Vape and manually calculate the GST charged on PST and Vpst (20% x 5%). Its set up to go into my GST holding account so it shows up on my GST filing report correctly. I did ask my accountant if there is an easier way but he didn't have an answer for Quickbook applications. My POS system sends me a report for each day in excel which I create a spreadsheet from that breaks if all down and gives me the calculations.

Ok thanks. I figured it out.  I think if you charge 6% on vape sales that equals 5% on the sales plus 20% PST tax.