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Active Member

Sales Tax for shipping

How do I make shipping exempt from sales tax?  Or does shipping get charged sales tax on an invoice?

 

Thanks,

Matt

7 Comments
BRC
Established Community Backer ***

Re: Sales Tax for shipping

Edit the shipping item and mark it non-taxable.

 

I don't think shipping is usually taxable, but it might be in your state.

 

Active Member

Re: Sales Tax for shipping

Thank you very much

Senior Explorer ***

Re: Sales Tax for shipping

Would if shipping is taxable for some customers (based on their location)?  Can it be set up to automatically tax shipping without us having to remember who gets taxed for shipping (QB Enterprise)?

QuickBooks Team

Re: Sales Tax for shipping

Hello there, ckennedy1.

 

Thanks for coming back. I'd love to help you set up sales tax for taxable shipping in QuickBooks.

 

You'll just need to setup a new item  for shipping fee and enter your desired tax rate. 

Below are the steps on how you set up:

 

  1. Go to List.
  2. Click Item List.
  3. Select New.
  4. From the Type drop down, choose Service.
  5. Enter your preferred Item Name/Number.
  6. Enter the Rate, Tax Code, and Account.
  7. Click OK.

Here's an article that shows a detailed guideline on how to set up sales tax for taxable shipping in QuickBooks: Set up sales tax in QuickBooks Desktop.

 

Stay in touch with me if there's anything else that I can help you with, please let me know as I'm here to help.

Senior Explorer ***

Re: Sales Tax for shipping

I am running Enterprise 19.0 and don't see those options This is what I have.  I've set up individual customers to be taxed (where applicable), but need to be able to also store if shipping is taxable per customer.

Senior Explorer ***

Re: Sales Tax for shipping

Screenshot (13).png

QuickBooks Team

Re: Sales Tax for shipping

Hello there, @ckennedy1.

 

Thanks for the screenshot. The steps provide by my colleague in this thread is for QuickBooks Deskop Point of Sale. That's why you're not seeing those options on your end.

 

You'll have a different way of setting this up on your QuickBooks Desktop Enterprise. That being said, let's create a taxable item for shipping services, then add it as another line item to your invoice. This way, your customer will be charged for the shipping tax.

 

Here's how:

  1. Go to your Lists menu, then select Item list.
  2. Right-click within the Item list window, then select New.
  3. Select Service from the Type drop-down list.
  4. Enter the Item Name/Number.
  5. Enter the Rate and Tax Code.
  6. Select an Income account in the Account section.
    shippingtax.PNG
  7. Click OK to save the item.

You're now ready to add a shipping service for your customer.

 

If you need to create a invoice and receive payments, please check out to these articles: 

Should you need anything else with the sales tax for shipping, don't hesitate to leave a comment below. I'm always around here in the Intuit Community to help.