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Use automated sales tax on an invoice or sales receipt

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

You can skip manually tracking 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 for you soon.

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: Selling or shipping out of state ? If you're registered to collect sales tax in another state, set up the right tax agency first. When you set it up, make sure to enter the full business address, including street address, city, state, and ZIP code so QuickBooks can calculate the sales tax correctly.
  4. Check your taxable items in the sales 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" screen 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?

Don't worry. After you switch to the new sales tax system, 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.

Note: We're rolling out this feature for everyone. If you don't see this option yet, it should be available for you soon.

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