Sales Tax in QuickBooks: You need to have to collect either a combination of GST and PST, GST only, or HST only depending on the sales tax for a province or territory in which you operate your business. An accurate report of these taxes can be done by the means of QuickBooks easily. An accurate report should be maintained so that one can easily monitor and remit them to appropriate tax collecting agencies.
Further, a businessman needs to know when and how to charge sales tax for the goods and services you supply to your customers. To create a QuickBooks sales tax in QuickBooks online is not a very difficult task. Anyone can setup the QuickBooks sales tax in QuickBooks online. To create QuickBooks sales tax in QuickBooks online one can follow the steps mentioned below:
Step 1 set up sales tax in QuickBooks preferences
- At first, go to the edit menu.
- Now select preferences.
- Now select sales tax from the preference window. Now go to the company preference tab.
- Now select yes to turn on sales tax.
- Now you have to mark both checkboxes to allow you to assign a tax code to each customer in the customer and supplier tax codes.
- Now change how the sales tax is displayed on forms. Two options will appear on the display taxes filed 1. Only display tax total on transactions. 2. Allow tax-inclusive prices.
- Now set sales tax defaults for items. In the Assign Sales Tax Codes area, you have to select the tax code that you will use most often for both taxable and non-taxable items.
- Assign sales tax code you often use.
Step 2 create a tax agency
- You can do this by adding a sales tax agency as a supplier in the QuickBooks desktop.
- Add a tax agency in QuickBooks.
Step 3 Set up Sales Tax Item or group
- Add sales tax item.
- Now add the rate.
- Set up sales tax group items.
Step 4 assign sales tax codes
- All the provinces have sales tax codes E for tax-exempt, and Z for Zero-rated. Most of the province also has the tax code G for GST. In some harmonized provinces the tax code includes H for HST. The sales tax code is P for PST in the province which charges PST. In Quebec, the code is Q for QST and S for standard GST and QST.
- About zero-rated sales tax.
- About the Default sales tax code.
- To manually add a sales tax code.
- To edit a sales tax code.
- To set up sales tax for customers option 1 (on customer menu) and option 2(On sales tax menu).
- To set up sales tax for other provinces if you need to charge sales tax for other provinces.
The above steps will help you setup sales tax in QuickBooks in case of any doubt contact QuickBooks support phone number. The QuickBooks support phone number is available 24/7.