Set up sales tax in QuickBooks Desktop for Mac

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

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 use 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

Turn sales tax on

1. Go to QuickBooks, then select Settings.
2. Select Sales tax.
3. Select Customers are charged sales tax.
4. Select how you pay sales tax: Monthly, Quarterly, or Annually.
5. Select how sales tax accrues.
   • As of invoice date for an Accrual Basis
   • Upon receipt of payment for a Cash Basis.
6. Go to Most common sales tax to select your most common sales tax item or group.
7. Select Mark taxable amounts with “T” when printing to see which amounts are taxable item when you print a transaction.

Add sales tax items or groups

Add sales tax items

1. Go to Lists and select Items.
2. Select the + then New Item.
3. Go to Type and select Sales Tax Item.
4. Complete the following fields:
   • Tax Name: enter a name for the tax item.
   • Description(optional): enter a brief description of the sales tax item.
   • Rate: enter the tax rate.
   • Tax Agency: add the name of the tax agency. If the tax agency you use isn’t on the list, you can add them as a vendor.
5. Select OK.

Add sales tax groups

1. Go to List and select Items.
2. Select the + then New Item.
3. Go to Type and select Sales Tax Group.
4. Complete the following fields:
   • Group Name/Number: enter a name or number for the tax group.
   • Description(optional): enter a brief description of the sales tax group.
   • Tax Item: select the individual tax items to include in the group.
5. Select OK.

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.

To adjust sales tax due:

1. Go to Vendors and select Sales Tax Adjustment.
2. Complete the following fields:
   • Adjustment Date: enter the date of the adjustment,
   • Sales Tax Vendor: select the vendor or tax agency you owe tax to.
   • Adjustment Account: select the account to record the adjustment in.
     • Use an expense account to adjust for penalties, fines, or a positive rounding error.
     • Use an income account to adjust for discounts, credits, or a negative rounding error.
   • Entry No (optional): enter an entry number for the adjustment.
   • Class (optional): if you use classes you can select a class to track the adjustment to.
3. Select how you need to adjust the sales tax:
   • Increase Sales Tax By: select this to increase your sales tax due.
   • Decrease Sales Tax By: select this to decrease your sales tax due.
4. Enter the Amount of the adjustment.
5. Select OK.