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ovtnvw
Level 3

Sales Receipts and Sales Tax Settings

Hello,

 

I am having a problem getting an accurate sales tax liability report. I believe it is due to the Taxable/Non-Taxable drop down in the sales receipts and invoices.

 

All of my products are recorded as taxable when I create a sale so the Tax field in the line item is "Tax".

 

I do not charge sales tax for out of state sales so in the tax field below the sales items list I select "Out of State" so that no sales tax is added.

 

My question is when I am not collecting sales tax, should the field at the bottom of the receipt be set to "Taxable Sales" or "Non Taxable Sales"?

 

Thanks.

Michael

3 Comments 3
Rasa-LilaM
QuickBooks Team

Sales Receipts and Sales Tax Settings

Thank you for turning to the Community about your concern, ovtnvw. 

 

We recognize the challenges that you're having tracking your products. Let me guide you in the right direction on which sales tax to use for the items. 

 

You'll have to choose the Non-Taxable sales tax code from the combo box in the Tax column if you're not collecting sales tax for the items. Also, you can leave the right sales tax item as is, and QuickBooks will record the sales as non-taxable (for the tax district).

 

For more in-depth information on how QuickBooks handles your sales taxes, click on the following link: User's Guide. Proceed directly to the Applying tax to a sale section (page 207).

 

Furthermore, these links cover topics on the sales tax workflow in QuickBooks Desktop for Mac:

 

 

Keep me posted if you have additional questions about sales taxes or other QuickBooks concerns. I'm always ready to respond to them. Have a good one. 

ovtnvw
Level 3

Sales Receipts and Sales Tax Settings

Thank you for the clarification, I realize which setting was incorrect and was able to clear up my reporting issues. Could you tell me if there is a way to set the Default Tax Code to be Non-Taxable for Sales Receipts? I am using Quickbooks for Mac 2020. Thank you.
Adrian_A
Moderator

Sales Receipts and Sales Tax Settings

I appreciate you for getting back to us, ovtnvw.

 

While the option to set a default tax code is unavailable, we can select Non-taxable every time we create a sales receipt.

 

I can see the advantage of this feature. With that, I suggest sharing this great idea with our developers. They'll collate proposals from other customers who find this suggestion beneficial. Here's how to send one:

 

  1. From the QuickBooks section, select Preferences.
  2. Select Feedback.
  3. Continue with the on-screen instructions to successfully submit your suggestion.

 

Moreover, you can pin these references as your guide in collecting sales tax:

 

 

I'm always around whenever you have concerns about creating sales receipts.

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