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Level 1

How to set-up tax-inclusive prices?

I live in the Philippines and I'm having trouble with setting up tax in invoice. Our VAT is inclusive of the price we quote to the customers. How do we set-up that option in Quickbooks? I'm using 2016  Desktop Enterprise Solutions.

Solved
Best answer 08-27-2018

Best Answers
QuickBooks Team

Re: How to set-up tax-inclusive prices?

Hello there justinsultan,

 

Welcome to the Community, I'd be happy to assist with getting your taxes set up.

 

To start recording sales tax in QuickBooks Desktop, you'll first need to turn the feature on and set up sales tax items or tax groups.
Here's how you'd turn it on:

 

1. From the QuickBooks Edit, menu click preferences.
2. In 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.

 

The following link will provide more information on creating sales tax items and sales tax groups: https://community.intuit.com/articles/1501455-set-up-sales-tax .

 

Please let me know if you have any questions.

View solution in original post

Moderator

Re: How to set-up tax-inclusive prices?

Hi there, @Maki01.

 

Thanks for dropping by the Community. I'm here to help you set up sales tax in QuickBooks Desktop.

 

Before you setup sales tax, you'll need to turn on this feature on the Preferences menu. Here's how:

 

1. Go to the Edit menu at the top, then select Preferences on the drop-down.

2. On the Preferences window, choose Sales Tax on the left pane.

3. Click on the Company Preferences tab.

4. Select Yes to turn on sales tax.

 

Once done, you can now set up sales tax item. Here's how:

 

1. On the Company Preferences tab, click Add Sales Tax item.

2. From the Type drop-down, choose Sales Tax Item.

3. Enter your preferred name for the tax item on the Sales Tax Name field.

4. On the Tax Rate (%) field, enter the specific rate for the item.

5. Then, on the Tax Agency field, type the name of the collecting agency. If the agency is not in the list yet, select Add New to set it up.

6. Click on OK once done.

 

You can also refer to this article for more information: Set up sales tax in QuickBooks Desktop.

 

For your second question, I'd like to verify what you mean about the purchase tax inclusive? Is it a customer purchase or a vendor purchase? To add the details, you can add a comment below.

 

I'm looking forward for your response. I'm always here to help you out.

View solution in original post

19 Comments
QuickBooks Team

Re: How to set-up tax-inclusive prices?

Hello there justinsultan,

 

Welcome to the Community, I'd be happy to assist with getting your taxes set up.

 

To start recording sales tax in QuickBooks Desktop, you'll first need to turn the feature on and set up sales tax items or tax groups.
Here's how you'd turn it on:

 

1. From the QuickBooks Edit, menu click preferences.
2. In 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.

 

The following link will provide more information on creating sales tax items and sales tax groups: https://community.intuit.com/articles/1501455-set-up-sales-tax .

 

Please let me know if you have any questions.

View solution in original post

Level 1

Re: How to set-up tax-inclusive prices?

Thanks for the reply! Looking for option same as screenshot posted. Thanks!

Level 1

Re: How to set-up tax-inclusive prices?

Please can you show me how to set-up sales tax and purchases tax inclusive on QB 2016 desktop version.

Moderator

Re: How to set-up tax-inclusive prices?

Hi there, @Maki01.

 

Thanks for dropping by the Community. I'm here to help you set up sales tax in QuickBooks Desktop.

 

Before you setup sales tax, you'll need to turn on this feature on the Preferences menu. Here's how:

 

1. Go to the Edit menu at the top, then select Preferences on the drop-down.

2. On the Preferences window, choose Sales Tax on the left pane.

3. Click on the Company Preferences tab.

4. Select Yes to turn on sales tax.

 

Once done, you can now set up sales tax item. Here's how:

 

1. On the Company Preferences tab, click Add Sales Tax item.

2. From the Type drop-down, choose Sales Tax Item.

3. Enter your preferred name for the tax item on the Sales Tax Name field.

4. On the Tax Rate (%) field, enter the specific rate for the item.

5. Then, on the Tax Agency field, type the name of the collecting agency. If the agency is not in the list yet, select Add New to set it up.

6. Click on OK once done.

 

You can also refer to this article for more information: Set up sales tax in QuickBooks Desktop.

 

For your second question, I'd like to verify what you mean about the purchase tax inclusive? Is it a customer purchase or a vendor purchase? To add the details, you can add a comment below.

 

I'm looking forward for your response. I'm always here to help you out.

View solution in original post

Level 1

Re: How to set-up tax-inclusive prices?

Hi,

Thank you for your prompt response.

Yes my second question is how to setup tax on purchases and vendor as well. I've set up sales tax but when i post testing Invoice the amount of tax is excluded. How to set the tax to be include on the total amount record.

Please can you help me on this.

 

Thanks,

Maki

Moderator

Re: How to set-up tax-inclusive prices?

Hi again, Maki01.

 

Thanks for your response and for clarifying your concern. Let me make sure you can set up sales tax on purchases and include sales tax when creating invoice.

 

QuickBooks is not designed to track sales tax automatically on non-sales transactions like bills, checks, and purchase orders. You'd need to manually track them and I'm happy to show you how.

 

To track sales tax on purchases as an expense (not to be paid later):

 

1. Create an Expense account.

     a. Go to Company menu, then click Chart of Accounts.

     b. Right click anywhere, then New.

     c. Select Expense, then click Continue on the Choose Account Type window

     d. Enter the Account Name and other details then Save & Close.

2. When creating a transaction (like a bill) in which you will be tracking sales tax, enter the bill as usual but go to the Expenses tab instead and select the expense account created in step 1.

3. Enter the amount of sales tax in the Amount column (this will need to be calculated manually).

4. Check if the total if its correct after clicking Recalculate.

 

To track sales tax on purchases as a liability (to be paid later):

 

1. Create an Other Current Liability account.

     a.Go to  Company menu  again, then click Chart of Accounts.

     b. Right click anywhere and select New.

     c. In the Choose Account Type window, click the Other Account Types drop-down then select Other Current Liability.

     d. Click Continue.

     e. Enter the Account Name and other details then click Save & Close.

2. When creating a transaction (like a bill) in which you will be tracking sales tax, enter the bill as usual, but go to the Expenses tab instead and select the liability account created in step 1.

3. Enter the amount of sales tax in the Amount column (this will need to be calculated manually).

4. Check if the total if its correct after clicking Recalculate.

5. When it is time to pay this sales tax, you can see the liability that has been accrued by looking at the Chart of Accounts.

6. This amount can be paid with a regular check.

 

For more information, you can check out this article: Track sales tax on purchases from vendors.

 

On the other hand, make sure to select the sales tax that you setup when creating test invoices so that it'll be added to the total amount. I've attached a screenshot for your reference.

 

That should help you fixed right up. Feel free to leave a comment if you have additional questions about sales tax. I'm here to help.

Level 1

Re: How to set-up tax-inclusive prices?

 
Level 1

Re: How to set-up tax-inclusive prices?

Thanks for this. But how about QuickBooks POS2013? How would I set up a tax inclusive price?  For instance, if the price is 5$ that's what prints on the receipt including the tax (*rate for example at 16%)

 

Any help is highly appreciated. Thanks. 

QuickBooks Team

Re: How to set-up tax-inclusive prices?

Hello there, Xhrs.

 

For now, we're unable to set up a tax inclusive price in QuickBooks Point of Sale. As a workaround, you can create a different item to represent your sales tax, then the price should be lesser. Or, you can discount the price by a standard rate. 

 

I will surely submit this idea to our management team. They will pass this along to our software engineers for review.

 

Let us know if you have other concerns. Have a good day! 

Level 2

Re: How to set-up tax-inclusive prices?

Quickbooks is no able to this "inclusive" pricing.  I have clients here in the US and here is how I deal with it.  There is a set formula to compute the tax amount included in the total.

 

the total $ collected divided by 1.0 then sales tax rate:  Example

total collected $100, which includes a total 8% sales tax:  100 divided by 1.0800 = 92.59

to proof the total take the 92.59 times 8% is $7.41;  92.59+7.41 is 100.

 

Sorry but NO WAY QB will this itself, you will do this on EVERY inv/sales receipt but it does work.

 

Level 1

how to set up the Display in print invoice for each items unit price inclusive vat .example display the products A in selling price 10 $ ,but in system should shows 10.5$ in if the tax is 5%,we would like to let system show is unit(inclusive tax) 10.5$.

 
QuickBooks Team

Re: how to set up the Display in print invoice for each items unit price inclusive vat .example d...

Thanks for joining this thread, @Roger Zeng.

 

The VAT calculation in QuickBooks depends on the selected preference. To include the 5% tax on the $10 invoice amount, you'll have to select the Inclusive of Tax setting. After that, identify and choose the VAT for the item.
1.PNG

That should give the correct amounts, @Roger Zeng. For future help with VAT, please check the following links:

Let me know if you have follow-up questions or concerns. I'm still here to help you further. Have a good one.

Level 1

Re: how to set up the Display in print invoice for each items unit price inclusive vat .example d...

Does QUICKBOOKS Desktop PREMIER have this feature as well? 

Level 1

Re: how to set up the Display in print invoice for each items unit price inclusive vat .example d...

Does this feature available with QUICKBOOKS DESKTOP Premiere as well? Cant seem to find it.

Moderator

Re: how to set up the Display in print invoice for each items unit price inclusive vat .example d...

Hello there, @tax included.

 

Welcome to the Community. If you're using the US version of QuickBooks Desktop, it shows as Sales Tax on the Preferences section.

 

To enable the feature, here's how:

 

  1. Click the Edit tab at the top menu bar and select Preferences.
  2. Choose Sales Tax on the left panel.
  3. Choose Yes.
  4. Hit OK

If you're using a different version, follow these steps instead:

 

  1. Click Edit located at the top.
  2. Choose Preferences, then the preferences pop-up window appears.
  3. On the left panel, click VAT.
  4. Click the Company Preferences tab, and click Yes next to Do you charge VAT?.
  5. Click the Add VAT Item button to open a new window.
  6. Enter the VAT information and click OK.

For future reference, visit the following articles about sales tax and VAT:

 

If there’s anything else I can help you with, click the Reply button and post a comment. I’ll be right here ready to help you. Have a good one.

Level 1

Re: how to set up the Display in print invoice for each items unit price inclusive vat .example d...

Hi thanks, got this already.

Hoping to find the feature where i can input a TAX-included rate so QB can compute sales and tax automatically.

We sell service at 100 (tax included) sales is 89.29 (100/1.12) and tax is 10.71

I tried using tax-exclusive rate as base in my invoice. However decimal points are problematic when computing with qty. Total receipt amount do not match so i have to manually adjust items to match actual amount. 

Help please. 

Level 1

Re: how to set up the Display in print invoice for each items unit price inclusive vat .example d...

How can i activate this one? Allow tax inclusive sales option

Level 1

Re: how to set up the Display in print invoice for each items unit price inclusive vat .example d...

Hi,

 

The QB screenshot you posted is from the QB online version. Yes, I was able to use the "Inclusive of Tax" feature and it helped a lot with invoicing since that's how sales tax is compute in the Philippines. I recently installed QB Desktop 2020. My problem is I cannot encode my sales data at the moment because sales tax is computed as an "add on"  to the price of products. I hope you can help me find the "Inclusive of Tax" feature or its equivalent in QB Desktop 2020. Thanks

QuickBooks Team

Re: how to set up the Display in print invoice for each items unit price inclusive vat .example d...

Hi there, @LeoP.

 

The Inclusive of Tax option is currently unavailable in QuickBooks Desktop (QBDT). And please know that recording sales tax in QBDT depends on how you set them up.

 

You can follow the details steps provided by my colleague FritzF above to turn on the option and set up sales tax items. For your reference, feel free to check out this article for more guidance: Set up sales tax in QuickBooks Desktop.

 

You might also want to read this article to learn how to handle sales tax in QuickBooks Desktop: Handle cash basis sales tax.

 

Keep in touch if you need more help with your sales tax, or if there's anything else I can do for you. I always have your back and am always happy to help. Have a great day!

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