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Level 2

How can I tax items at different rates on the same invoice?

I sell items that carry different sales tax rates, so I cannot just tax the total on an invoice I have to tax each item individually.  How do I set this up?  QB seems only to want to tax the total of taxable items on the invoice.  Also, if I create separate invoices to bill these items QB wants to change the tax assigned to the customer each time I sell an item with a different tax rate.  Any videos or articles on this?  Thanks.
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Best answer 12-10-2018

Best Answers
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Level 15

How can I tax items at different rates on the same invoice?

@ will

the only way to use different sales tax rates for different items is

create a sales tax item with a 0% rate and assign that to the customer

on the invoice, list all items for rate 1, follow with a sub total item, follow that with sales tax item for rate 1

list the items for rate 2, sub total item, sale tax item for rate 2

etc etc

View solution in original post

15 Comments
Highlighted
Level 15

How can I tax items at different rates on the same invoice?

@ will

the only way to use different sales tax rates for different items is

create a sales tax item with a 0% rate and assign that to the customer

on the invoice, list all items for rate 1, follow with a sub total item, follow that with sales tax item for rate 1

list the items for rate 2, sub total item, sale tax item for rate 2

etc etc

View solution in original post

Highlighted
Level 2

How can I tax items at different rates on the same invoice?

Thanks, Rustler.  I will give that a try.  It is much more complicated than I had hoped but I see that QB wants to assign a general rate to each customer which is the underlying problem.  Adding the fields you suggest to the invoice will require building an invoice but it is what it is.
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Level 15

How can I tax items at different rates on the same invoice?

You're Welcome
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Level 2

How can I tax items at different rates on the same invoice?

Rustler, after going to the Layout Designer I don't see a way to add the fields you suggest to an invoice.  Can you point me in the right direction?  How do I place a subtotal field on the invoice.  This would require customization through the Layout Designer, correct?
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Level 2

How can I tax items at different rates on the same invoice?

Just figured it out.  Thanks!
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Level 15

How can I tax items at different rates on the same invoice?

You're Welcome
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Level 1

How can I tax items at different rates on the same invoice?

I have a similar issue.  Can you give me a step by step to customize through the layout designere.
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Level 8

How can I tax items at different rates on the same invoice?

You'll need to set up a sales tax group and add the tax items to the group.
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Level 2

How can I tax items at different rates on the same invoice?

I don't think this is a solution?
Groups would still apply to the total of the taxable items invoiced rather than single items.
So, this would work only if I could use multiple groups on a single invoice, which is the original problem of not being able to use multiple tax rates on a single invoice.
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Level 2

How can I tax items at different rates on the same invoice?

To clarify: I need to apply different sales tax rates to individual items on an invoice, not multiple tax rates on each item.   Anything come to mind?  Appreciate the help.
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Level 8

How can I tax items at different rates on the same invoice?

We don't have sales tax here so I'm not understanding how multiple items on one invoice could have different tax rates.
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Level 2

How can I tax items at different rates on the same invoice?

Some of my service items are taxable as labor and materials and other service items are taxable as materials only.  I could solve the problem by breaking out the labor and materials as items but this requires a lower level of itemization than I wish to record.  I don't want to put labor and materials on the customer's invoice, just the service items they purchased.
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Level 1

How can I tax items at different rates on the same invoice?

Some state have State Tax rate, Country Tax Rate, and Local city tax rate. Also, I have a client who has a bar and we need to add sales tax AND ABC tax on liquor.  I have not figured out how to o this yet.  I just started with the bar client today.
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Level 1

How can I tax items at different rates on the same invoice?

I am in texas and i have a simple question.   

 

in my area we need to charge 8.25 percent on actual merchandise  and 6.25 on our service.   why cant it allow me to set 6.25 on all services and 8.25 on merchandise.   I had quickbooks online for a few years and it did it very easy.  so if i charged line item of 100.00 parts and 100.00 in service the tax would show up 14.50 total due.  it charged 8.25 on the parts and 6.25 on the service automatically and very easy.  i cant figure out how to simply apply that to quickbooks  enterprise.

 

please help

 

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QuickBooks Team

How can I tax items at different rates on the same invoice?

Welcome to the Intuit Community, Neal.


Let’s create a specific sale tax for each item and then set up a 0% rate. We’ll use the latter in the Tax section for QuickBooks to calculate the correct amount.


If you haven’t turned on the Sales Tax feature, go to the Preferences page to set it up. Here’s how:

 

  1. Navigate to the Edit menu and pick Preferences to select Sales Tax.
  2. Choose the Company Preferences tab to mark the radio button for Yes in the Do you charge sales tax section.
  3. Next, hit the Add sales item button to access the New item window.
  4. From there, choose Sales Tax Items and fill in the field boxes.
  5. Make sure to enter the correct rate (8.25% or 6.25%).
  6. Click OK.
  7. Follow steps 1-6 from the above process to enter the 0% rate.
    st.png st1.png st3.png st4.png

When creating an invoice, input the service/merchandise on the first line item. Next, go to the next line and select the appropriate sales tax rate (8.25% or 6.25%).


We’ll have to perform the same procedure for the remaining product/service. Once done, click the Tax drop-down to choose 0% and then tap the Save and close button.


I’m also adding an article with a breakdown of the links for each topic about the Sales Tax option in the desktop version: How do I?


Stay in touch if you have any other concerns or questions about the product. Please know I’m here to help you. Have a good one.

 

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