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Level 3

multiple sales tax rates

I have a small fishing lodge located in Texas.  Some of our offerings, such as meals and fishing tackle sales are subject to general Texas sales tax of 6.25% which is payable monthly to the State Comptroller.  Our room rates are subject to a Texas hotel tax of 6% which is payable quarterly to the State Comptroller and a 9% hotel tax which is payable monthly to the local county treasurer.

I currently have only the general sales tax set up as Sales Tax and all items subject to it are set up as taxable.

To track the Texas and county hotel taxes I have items set up in my Item Lists for each room rate which are tied to a Texas Hotel tax Liability account and a county Hotel tax liability account.  The only problem is each Hotel tax item must be manually added to the invoice.

 

My question is: Is there a way to set up a second tax item similar to the general sales tax for the hotel taxes which would go to a hotel tax liability account.  In other words, can I set up a tax code with a different tax rate from the general sales tax and make the room rates subject to that tax?

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Best answer a month ago

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Highlighted
Moderator

multiple sales tax rates

Thank you for the detailed post, PortMike.

 

You can add a new sales tax item to track the hotel taxes separately. Here's how:

  1. Go to the Lists menu, then select Item List.
  2. Select New, then Sales Tax Item.
  3. Enter the information like the sales tax name, rate, and tax agency.
  4. Select OK.

Check out these articles to learn more about sales tax in QuickBooks:

I'll be right here if you have additional questions about taxes.

View solution in original post

3 Comments
Highlighted
Moderator

multiple sales tax rates

Thank you for the detailed post, PortMike.

 

You can add a new sales tax item to track the hotel taxes separately. Here's how:

  1. Go to the Lists menu, then select Item List.
  2. Select New, then Sales Tax Item.
  3. Enter the information like the sales tax name, rate, and tax agency.
  4. Select OK.

Check out these articles to learn more about sales tax in QuickBooks:

I'll be right here if you have additional questions about taxes.

View solution in original post

Highlighted
Level 3

multiple sales tax rates

MaryLureenM,

Thank you for your prompt response.  I was able to create sales tax items for each of the entities that I collect hotel taxes for.  I then created a group item which combined the two hotel taxes into one sale tax item and created a tax code for hotel taxes.

I think I now need to create a subtotal item which subtotals the hotel taxes due on the invoice and enter the hotel taxable items and then enter the subtotal item to capture the hotel taxes.

My next question is will QB automatically correct the subtotal amount if one of the hotel taxable items changes?  For example, if a customer stays and extra night and the extra night is added to the invoice will QB automatically update the hotel tax subtotal item for the additional night? 

Highlighted
QuickBooks Team

multiple sales tax rates

Yes, QuickBooks will update it, @PortMike.


As long as the invoice is the same, QuickBooks will automatically adjust the subtotal amount based on the tax code that you’ve assigned.


The program will calculate it accordingly, so you’ll have accurate reporting. You can track your entries by running the Sales Tax Revenue Summary report. It provides a summary of sales by tax agency and the total sales for each tax code, which can be helpful when you are preparing a sales tax form. Let me show you how:

 

  1. Go to the Reports menu.
  2. Select Vendors & Payables, then choose Sales Tax Revenue Summary.
  3. Click Customize and then select the details you want to display on the report.
  4. Hit OK.


In case you want to review sales tax reports so you can make sure everything is accurate before paying taxes. Just visit the link to learn more.


Don’t hesitate to get back on the Community page if you have any other concerns or follow up questions about sales tax. We’ll be here anytime. Have a great day.

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