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Create new tax rates in QuickBooks Online

by Intuit Updated 7 months ago

Learn how to set up a new tax rate in QuickBooks Online.

  1. Go to Taxes.
  2. Select Add tax.
  3. Select Tax rate.
  4. Enter the Tax name (For example. GST 9%).
  5. Enter Description.
  6. Select whether this new tax rate applies for Sales or Purchases or to both. Note: It's advised that you select both options. If in doubt, please consult with your accountant.
  7. If you've selected Sales, enter the Sales rate applied for Sales transaction.
  8. Select the Account type for this tax rate. 
  9. Select an option from the Show net amount on return line dropdown.
  10. If you've selected Purchases, enter the Purchase rate.
  11. Select the Account type for this tax rate. Note: Usually it'll be Liability. However, in case of agencies where purchase tax isn't reclaimable, this account type will be set to Expense by default. If in doubt, please consult with your accountant
  12. Select an option from the Show net amount on return line dropdown. 
  13. Select Save.

You can now apply your newly created tax rate to transactions and sales forms.

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