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sales tax in invoice

How do I add sales tax in invoice.

3 Comments
Established Community Backer ***

Re: sales tax in invoice

Start in edit preferences to turn ON sales tax. Edit items/services to be taxable and sales tax will automatically calculate and record on invoices for all taxable sales items and all taxable customers.

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QuickBooks Team

Re: sales tax in invoice

Hello there, @LupitaG-2019.

 

I'd like to add additional steps to what john-pero provided above on how you can add sales tax on your invoices.

 

Adding sales tax on invoices can be done in just a few clicks.

 

Here's how:

  1. From the QuickBooks Edit menu, click Preferences.
  2. On 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 to do this.
  5. Assign Sales tax code.
  6. Set the Sales tax basis (Accrual or Cash). Take into account your company’s accounting a preference.
  7. Set up your preference for paying the sales tax (Monthly, Quarterly, Annually).
  8. Click OK.

For complete details about setting up sales tax, please check out this link: Set up sales tax in QuickBooks Desktop.

 

Once done, you can create an invoice or an estimate, and a tax column will now appear on your sales form. I've attached a screenshot for your visual reference:

taxsetup.PNG

There you go!

 

Please let me know how it goes by leaving a reply below. I'll be here if you need further assistance. Thanks for choosing Quickbooks, LupitaG-2019!

Established Community Backer ***

Re: sales tax in invoice

@BettyJaneB step 6 will depend more on your state requirements of accrual or cash than your own company choice of accrual or cash for accounting purposes and may in fact override the overall company choice.

 

Example.- a Cash basis reporting company in a state with accrual sales tax will record and report sales tax on accrual basis.

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