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Use automated sales tax on an invoice or sales receipt in QuickBooks Online

by Intuit Updated 2 days ago

Learn how you can automate your sales tax calculation when you create an invoice or sales receipt.

You don’t have to manually track the sales tax based on where you sell, what you sell, and other transaction details. QuickBooks knows the tax rules, wherever you run your business.

After you set up automated sales tax, here's how to automatically track sales tax when you make a sale.

We're rolling out a new sales tax system for all QuickBooks users. If you use manual sales tax, check if you can now switch over to automated sales tax. If you don't have the option to switch, don't worry. It should be available to you soon.

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Track sales tax automatically when you make a sale

  1. Follow the usual steps to create an invoice or sales receipt.
  2. Make sure the Location of sale is correct.
  3. If you ship ordered items, add the Shipping to, Ship via, Shipping date, Tracking no. info so QuickBooks knows where to charge your sales tax.
    Note: If you're registered to collect sales tax in another state, set up the right tax agency first.
  4. Check your taxable items in the tax column.
    Note: If you haven't already, add tax categories to your products and services. This lets QuickBooks know what's taxable and what isn't.
  5. Select See the math or the total tax amount. This opens the "Let's calculate your tax rate" page where QuickBooks gives you a detailed breakdown of the sales tax.
  6. Review the sales tax details in your transaction. When you're done, select Close.
  7. Select Save and send.

Still need to track tax rates manually?

You have the option to use custom rates on invoices and receipts. Use custom rates to manually track special taxes like meals or excise tax. Or, use custom rates if you feel more confident tracking sales tax manually.

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