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tdswky
Level 1

Variable Sales Tax Rate

How do we set up a sales tax item with a variable rate?  There's no option that I can see to change it when creating a sales order or invoice.  Do I have to edit the item every time?

3 Comments 3
CamelleT
QuickBooks Team

Variable Sales Tax Rate

I'm here to provide some details about sales tax item with a variable rate, tdswky. 

 

In QuickBooks Desktop, setting up a sales item with a variable rate is currently unavailable. However, you can set up a new sales tax item, so you won't need to change the rate every time you create a sales order or invoice.

 

To set up a new sales tax item,here's how:

 

  1. Click Edit, Select Preferences.
  2. Select Sales Tax, then click Company Preferences.
  3. Click Add sales tax item.
  4. Enter a name for the tax item in the Sales Tax Name field. Use the tax location for the name and provide additional details in the Description field.
  5. On the Tax Rate (%) field, enter the specific rate for the item.
  6. On the Tax Agency field, type the name of the collecting agency (set up as a Vendor). If the agency is not on the list yet, select Add New to set it up.
  7. Select OK.

 

To select the variable tax when creating an invoice, here's how:

 

  1. Go to Customers, then choose Create Invoices.
  2. Complete all the fields.
  3. On the Tax dropdown, choose the variable tax rate you set up.
  4. Hit Save & Close.

 

Additionally, check out this article to help you review your sales tax payable, so you can make sure everything is accurate before paying taxes: Review sales tax reports.

Drop a comment below if you have further questions about setting up a sales item. I'll be here to assist you. Take care!

tdswky
Level 1

Variable Sales Tax Rate

If I have to enter a specific tax rate when I set it up and there's no way to change it on the sales order/invoice, how is that a variable rate?

IrizA
QuickBooks Team

Variable Sales Tax Rate

I see that you want to set up a sales tax with a variable rate, tdswky. Let me share further information about taxes. 

 

In QuickBooks Desktop (QBDT), changing or editing your tax within your sales form, such as invoices, is currently unavailable. I recommend sending feedback so that our Product Development Team can review it and might consider your suggestion. 

 

Here's how: 

 

  1. Go to the Help menu.
  2. Select the Send Feedback Online option.
  3. Choose the Product Suggestion. You'll be displayed with a pop-up window.
  4. Type your feedback suggestion in the space provided.
  5. Click the Send Feedback button.

 

However, you can still edit it manually by going to the List menu. Here's how: 

 

  1. Go to the Lists menu.
  2. Select Item List.
  3. Look for the name that you want to edit, then double-click it.
  4. Under Tax Rate, enter your preferred tax in the space provided. 
  5. Press OK.

 

Additionally, you can utilize this article if ever you're required to collect taxes for certain goods and services you offer: Process sales tax adjustment.

 

If you have further concerns regarding sales tax or anything related to QBDT, feel free to reply to my post or reach out to the Community. We're here to help you.

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