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Set up sales tax in QuickBooks Desktop
by Intuit•1• Updated 2 months ago
You may be required to collect taxes for certain goods and services you offer. QuickBooks helps you keep an accurate record of these taxes so you can easily monitor and remit them to the appropriate tax collecting agency.
This article is part of a series on Sales Tax. It covers the usual sales tax workflow in QuickBooks Desktop.
It also helps you complete other sales tax-related tasks.
- Handle cash basis sales tax
- Process sales tax adjustment
- Show multiple sales tax items on an invoice
- Refund sales tax collected from tax exempt customers
- Track sales tax on purchases from suppliers
If you encounter problems while working on your sales tax, see Resolve common sales tax issues.
- Assign sales tax codes. Sales tax codes help you track taxable and non-taxable sales and/or customers. Setting up and assigning the correct sales tax code allows you to run a report that divides the total taxable and non-taxable sales. When you turn on sales tax in QuickBooks, two tax codes are automatically created: TAX (taxable) and NON (non-taxable). TAX is used for items and customers that you need to collect tax for. NON is used for items and customers that are exempted from tax such as non-profit organizations, out-of state sales, or items that your customers will resell.
- Set the Sales tax basis (Accrual or Cash). Take into account your company’s accounting an preference.
- Set up your preference for paying the sales tax (Monthly, Quarterly, Annually).
- Select OK.
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