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sashajselectric
Level 1

How do you add tax to estimates and invoices?

How do you add tax to estimates and invoices. I made an estimate but it doesn't show tax and I don't see how to enter. Thank you. First time user :)

Solved
Best answer December 10, 2018

Best Answers
BettyJaneB
QuickBooks Team

How do you add tax to estimates and invoices?

Hi there, sashajselectric,

I'd be happy to help you in setting up sales tax to your estimates and invoices.

Here's how:

  1. From the QuickBooks Edit menu, click Preferences.
  2. On the Preferences window, click Sales Tax then go to the Company Preferences tab.
  3. Click the Yes radio button to turn on sales tax.
  4. Set up the sales tax items or sales tax groups for each county, district, city, etc. where you collect sales tax. Click Add sales tax item to do this.
  5. Assign Sales tax code.
  6. Set the Sales tax basis (Accrual or Cash). Take into account your company’s accounting an preference.
  7. Set up your preference for paying the sales tax (Monthly, Quarterly, Annually).
  8. Click OK.

You can refer to this article for more details: https://community.intuit.com/articles/1501455-set-up-sales-tax

After setting up the sales tax.You can try to create an invoice or an estimate and see if a tax column will appear.

I've attached a screenshot for you to be guided through the steps.

Please let me know how it goes by leaving a comment below. I'll be here if you need further assistance. Thanks for choosing Quickbooks sashajselectric.

View solution in original post

16 Comments 16
BettyJaneB
QuickBooks Team

How do you add tax to estimates and invoices?

Hi there, sashajselectric,

I'd be happy to help you in setting up sales tax to your estimates and invoices.

Here's how:

  1. From the QuickBooks Edit menu, click Preferences.
  2. On the Preferences window, click Sales Tax then go to the Company Preferences tab.
  3. Click the Yes radio button to turn on sales tax.
  4. Set up the sales tax items or sales tax groups for each county, district, city, etc. where you collect sales tax. Click Add sales tax item to do this.
  5. Assign Sales tax code.
  6. Set the Sales tax basis (Accrual or Cash). Take into account your company’s accounting an preference.
  7. Set up your preference for paying the sales tax (Monthly, Quarterly, Annually).
  8. Click OK.

You can refer to this article for more details: https://community.intuit.com/articles/1501455-set-up-sales-tax

After setting up the sales tax.You can try to create an invoice or an estimate and see if a tax column will appear.

I've attached a screenshot for you to be guided through the steps.

Please let me know how it goes by leaving a comment below. I'll be here if you need further assistance. Thanks for choosing Quickbooks sashajselectric.

View solution in original post

sashajselectric
Level 1

How do you add tax to estimates and invoices?

Ok thank you, I got that all. I am stuck now on what to put into the box Tax Agency (vendor who you collect for) 

It sasys to add new but I'm not sure who the vedor is, is that the company info we are doing work for.

Thank you as I am waiting to see my CPA who will be helping me more to learn quickbooks

BettyJaneB
QuickBooks Team

How do you add tax to estimates and invoices?

Thanks for getting back to me @sashajselectric,
Tax agency will be the agency that you're going to pay your tax. In this case, it would be your state agency.
Feel free to leave a comment below if you need anything else.
Big B
Level 1

How do you add tax to estimates and invoices?

Can you set up Fed. excise tax the same way, I make fishing lures and I have to charge 10% excise tax on each lure that I sale

Barry

Big B
Level 1

How do you add tax to estimates and invoices?

How do I add federal excise tax to a invoice? I make fishing lures and I have to charge 10% excise tax on each lure.

Thank you,

Big B

ShiellaGraceA
QuickBooks Team

How do you add tax to estimates and invoices?

Hi Big B,

 

You can add the excise tax as a sales tax item then apply it in your invoice. Let me help you on how to get this done.

  1. Go to Edit, then Preferences.
  2. Click Sales Tax, then Company Preferences.
  3. Click Add sales tax item
  4. Under Type, choose Sales Tax Item. Then, type the Sales Tax Name, Description, Tax Rate (%), and the Tax Agency (vendor that you collect for).
  5. Click OK.

To apply the excise tax, just add the sales tax item under the Tax column and the Tax drop-down in the invoice.

 

Feel free to check out this handy article for details: Set up sales tax in QuickBooks Desktop.

 

I've also added this article for future reference: How to resolve common sales tax issues.

 

If there's anything else you need help with, please don't hesitate to swing by anytime.

ST1.JPG ST2.JPG

Remodeler
Level 1

How do you add tax to estimates and invoices?

Hello.

Can you help me? It appears I'm unable to apply sales tax to my estimates and invoices

David-212915
QuickBooks Team

How do you add tax to estimates and invoices?

Thanks for reaching out to the Community, @Remodeler. I'd be happy to assist you with applying sales tax.

 

To help ensure that I provide the best resolution, could you please let me know what happens when you try to apply the item to an invoice or estimate?

 

In the meantime, I'm including an article an overview of using this feature: Set up sales tax. This resource provides steps for turning sales tax on and setting up tax items. 

 

I look forward to getting to the bottom of this and getting sales tax included in the transactions. Have a good one. 

Tracey-Ann Harriage
Level 1

How do you add tax to estimates and invoices?

Hello, I have tried all the steps and they were done. However, the GCT has not been applied. I am seeing the columns and the 15% but it has not been applied.

Please help as I'm desperately awaiting your response.

jamespaul
QuickBooks Team

How do you add tax to estimates and invoices?

Hello, Tracey-Ann Harriage.

 

I've got you covered and I have the steps to help you apply the 15% GCT on your invoice. 

 

I looked at your screenshot and I see that your line items are set to Non-taxable. You'll want to select the Taxable code under the TAX column so QuickBooks can calculate the 15% GCT. 

 

Simply select Tax under the TAX column for each line item. Here's a visual demonstration: 

 

salestaxlinetitem1.PNG

 

My colleagues have already linked this article. Just for convenience, I'll include it on my response if you need a reference on how sales taxes work in QuickBooks: Set up sales tax in QuickBooks Desktop.

 

Ready to record your invoice payments after resolving the sales tax calculation? Check this article for a guide: Record an invoice payment

 

You can also read other articles in our general support page. Just select a specific topic, then browse for an article. 

 

I'm open to any other concerns you might have for QuickBooks Desktop. I'm here to help you with your sales transactions, customers or guide you in other areas in the program. 

mkk1llc
Level 1

How do you add tax to estimates and invoices?

How do I set a default sales tax rate on an invoice? I have my local tax rate set up but on the invoice it has a drop down and I have to choose the rate. Would prefer to have it default to the most common rate we use. 

MariaSoledadG
QuickBooks Team

How do you add tax to estimates and invoices?

I have an easier way for you so you can select your default tax rate in QuickBooks quickly, mkk1llc.

 

In QuickBooks Desktop, since you'll always have the option to add several tax rates that you can use, you'll have to select a tax rate when creating an invoice. You'll want to set up the most common sales tax item that you'll use to filter them and easier for you to choose. I've attached a screenshot for your visual guide. 

 

In addition, you may need to make sales tax adjustments into or out of your Sales Tax Liability account, you can read this article for more information: Process sales tax adjustment.

 

Feel free if you have any other concerns about your sales tax rate. I'll always be right here if you need help. 

mkk1llc
Level 1

How do you add tax to estimates and invoices?

Thank you. I am using QBO and don't find a tax section under Account and Settings

BettyJaneB
QuickBooks Team

How do you add tax to estimates and invoices?

I'm grateful for the clarification that you gave, @mkk1llc.

 

You'll need to mark your customer as taxable and set the default tax rate for your transactions. I'd be please to guide you on how to accomplish this.

 

Here are the steps that you need to follow:

  1. Select Taxes from the left menu.
  2. Select Sales Tax at the top.
  3. From the Related Tasks field, select Edit sales tax settings.
  4. Select the Default sales tax drop-down arrow then choose the tax you would like to appear as the default sales tax.
  5. You can also choose to Mark all new products and services taxable and Mark all customers taxable
  6. Click on Save.

Your new default rate will now show up on all sales forms. However, if you want to charge a customer a different sales tax rate, use the Tax drop-down arrow on the sales form to change the tax rate. 

 

For more details about setting default tax in QuickBooks Online, you can refer to this link: Default customer sales tax rate in QuickBooks Online.

 

I'm also adding here a link that provides insights about applying sales tax to your sales forms: Apply sales tax rates to transactions and sales forms.

 

Please let me know if you have additional concerns about taxes or with QuickBooks. I'm here to help you. Have a pleasant day.

mkk1llc
Level 1

How do you add tax to estimates and invoices?

I am in the edit settings for sales tax but don't see the drop down you mentioned for default sales tax. What am I missing?

 

JessT
QuickBooks Team

How do you add tax to estimates and invoices?

Hi mkk1llc,

 

Thank you for following up on your concern and your screenshot. I'll share information about it.

 

Making the tax rate you set up as a default is a great option because you use it in your sales transactions. However, your screenshot shows that you are in the Automated Sales Tax interface. It doesn't have an option to set that up.

 

What BettyJaneB has shared with you is for the old sales tax interface, which is no longer available to newly set up QBO companies.

 

Just comment again if you have additional questions with your tax rates or other concerns. The Community team is always available to assist you again.

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