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Frequent Contributor *

Sales Tax Liability

We just began using Quickbooks in our company.  We are a boat part manufacturer in West Palm Beach.  I keep getting a message when I go to my sales Tax Liability report that says: 

 

Quickbooks has detected transactions that have a sales Tax item with a zero rate even though the items are marked taxable.  It tells me to quickzoom and fix it.  I haven't found any like that.  Is there somewhere else I should be looking?

2 Comments
QuickBooks Team

Re: Sales Tax Liability

Congratulations on your new QuickBooks Desktop account, Stayseea.

I'm here to help you with your Sales Tax Liability report via QuickBooks Desktop. Let's figure this out.

 

To better isolate this issue, you may want to check your Sales Tax items and ensure that there's a rate indicated on each item.

 

Here's how:

 

  1. Click List at the top menu bar.
  2. On the drop-down list, click Item List.
  3. Double-click the Sales Tax item.
  4. Check the Tax Rate (%).
  5. Hit OK.

I've attached some screenshots to guide you through the steps.

 

 

 

 

You can get more information in this article: https://quickbooks.intuit.com/community/Getting-Started/Set-up-sales-tax-in-QuickBooks-Desktop/td-p/....

 

Keep me posted if you need additional assistance with Sales Tax in QuickBooks Desktop.

BRC
Established Community Backer ***

Re: Sales Tax Liability

RE: "Quickbooks has detected transactions that have a sales Tax item with a zero rate even though the items are marked taxable."

 

I'm not sure why this message is appearing in the first place.  The case it calls out is perfectly reasonable.  The tax-ability of an item does not imply that the tax applied should not be 0%.  For example, you might have taxable items but if you ship them out of state, you'll likely use a 0% tax item.