Let's review the service item you've created and ensure that this is taxable, seldin. I can walk you through on how to do so.
When setting up a product or service in QuickBooks Online (QBO), you have the option to indicate whether the item is taxable or not. To verify this, you can review the service profile to ensure it is set up correctly. Here's how you can do it:
- Head to Sales, then select Products & services.
- Find the service item and click the Edit option, under the Action column.
- Go to the Sales Tax column, then see if it's taxable by clicking the Edit sales tax.
- Once you've ensured that this item is taxable, click Done, then Save and close.
It is also important to make sure that your customer is taxable so that taxes can be calculated for taxable items.
If you want to understand how QBO calculates taxes, you can refer to this article for more information.: Learn how QuickBooks Online calculates sales tax.
Keep me posted if you have other questions about applying taxes to your service item. I'll be sure to help you anytime.