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Set up sales tax in QuickBooks Desktop for Mac

by Intuit Updated 9 months ago

Learn how to set up sales tax in QuickBooks Desktop for Mac.

This article is part of a series on Sales Tax. It covers the usual sales tax workflow in QuickBooks Desktop for Mac.

If you encounter problems while working on your sales tax, see Resolve common sales tax issues.

If you sell taxable products or services, QuickBooks can help you calculate and track your sales tax. Then, when it’s time to file your sales taxes, you’ll have everything you need to submit your payment. If you’re using QuickBooks Desktop for Windows, here’s how to set up sales tax.

Note: Before you get started, make sure you check the tax rates and requirements with your tax agency.

How to set up sales tax

  1. Go to the QuickBooks menu, then select Settings.
  2. Select Sales tax.
  3. Select Customers are charged sales tax.
  4. Select if you pay sales tax Monthly, Quarterly, or Annually.
  5. Choose how sales tax accrues. Select As of invoice date for an Accrual Basis or select Upon receipt of payment for a Cash Basis.
  6. Select the dropdown for Most common sales tax or select Edit to set up sales tax items or groups for each county, district, or city you collect sales tax.
  7. Mark taxable amounts with “T” when printing. If you want to see which transactions have a taxable item when you print, select the “T” next to taxable items. Each item and customer can be set up as taxable, this makes it so the sales tax is automatically calculated when a transaction is created.

How to adjust the sales tax amount you owe

When you make sales tax adjustments, money will move into or out of your Sales Tax Liability account. You’ll want to adjust your sales tax liability for things like:

  • A credit for a previous overpayment or an early payment discount given by your sales tax agency.
  • A fine charged by your sales tax agency for a late payment or non-payment the previous tax year.
  • Corrections to sales from a previous period.
  • Rounding differences between QuickBooks and your sales tax forms.
  • Sales tax holiday declared by your agency.

Here’s how to adjust your sales tax due:

  1. Go to the Vendors menu, and select Sales Tax Adjustment.
  2. Enter the adjustment date, sales tax vendor, adjustment account, and any other info.
    1. Use an expense account if you’re making adjustments for penalties and fines or if you’re entering a positive rounding error.
    2. Use an income account if you’re making an adjustment because of a discount/credit or if you’re entering a negative rounding error.
  3. Choose if you need to increase or reduce the sales tax, then enter the adjustment amount.
  4. Select OK.
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