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Tom241
Level 1

-20% tax showing on my invoice

Hi I do I how tax deducted from my invoice please -20%

1 Comment 1
ShyMae
QuickBooks Team

-20% tax showing on my invoice

I've got the information you need regarding sales taxes, @Tom241. I'll be happy to guide on how to view and set this up. 

 

QuickBooks Self-Employed helps you keep track of the income you earn from the products and services you sell. However, it doesn't automatically calculate sales tax, which means that you need to do it manually every time you create an invoice. 

 

First, let's create a specific sales tax line item:

 

  1. Go to the Invoices menu, then select Create Invoice.
  2. Scroll down and click Add product or service.
  3. On the Product or Service dropdown, click the + Add new.
  4. Enter "Sales Tax Deduction" for the name and choose an Amount type. (Please know that when entering the tax, you'll have to input the amount, not the percentage)
  5. Then hit Save.
    Sample 1.jpg

    Sample 2.jpg

 You can now include the "Sales Tax Deduction" item and manually add the tax amount. 

 

To create an invoice with the services and products you sell: 

 

  1. Click Add another product & service dropdown to add items or services you sold. 
  2. Select Flat rate or By hour from the dropdown menu. Or select By item if you're charging for a product. Enter an amount. 
  3. Once done, click Save. 
    Sample1.jpg


Please make sure to review the Amount field and calculate the sales tax for the purchase total. Additionally, note in the Description field how much sales tax you added to the invoice. This will help you stay organized during tax season.

 

Moreover, I'll add an article to learn more how QuickBooks Self-Employed calculates your taxes. Please check out this article for more guided information: Automatically estimate your income tax.

 

You can enter your response by tapping the reply button if you need assistance or more information regarding your sales taxes. I'm always happy t o help. Have a good one!

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