How to Set Up Sales Tax in QuickBooks Online?

When it comes to managing your company finances, QuickBooks is considered to be among the best accounting software available. Its unmatchable features allow users to effortlessly monitor their transactions and prepare their tax returns quickly and systematically. To prepare a sales tax report, you need to first understand how to set it up on QuickBooks. This blog will guide you with the right steps to add or edit sales tax rates and agencies in QuickBooks. If you want to clarify any doubts about the sales tax options in QuickBooks Online, you can even get in touch with an experienced software technician through the QuickBooks customer service number, which is available 24 hours a day.

Add or Edit Sales Tax Rates and Agencies

Steps to add a tax rate and agency:

  • Step 1: Select the ‘Taxes’ option from the left menu.
  • Step 2: Choose ‘Add/edit tax rates and agencies’ from the Related Tasks list.
  • Step 3: Click ‘New’ and select your preference; single or combined tax rate.
  • Step 4: Enter a name for the tax, the agency you pay, and the percentage.
  • Step 5: Be sure to use a single rate if you pay one rate to a single agency.

Step to add a combined tax rate:

  • Step 1: Select the ‘Taxes’ option from the left menu.
  • Step 2: Choose ‘Add/edit tax rates and agencies’ from the Related Tasks list.
  • Step 3: Click ‘New’ and then choose a combined tax rate.
  • Step 4: Type a name for the combined rate and the sales tax requirements.
  • Step 5: If required, choose additional components and select ‘Save.’

Step to edit a tax rate:

  • Step 1: Select the ‘Taxes’ option from the left menu.
  • Step 2: Choose ‘Add/edit tax rates and agencies’ from the Related Tasks list.
  • Step 3: Select the tax rate that you need to change and then press ‘Edit.’
  • Step 4: Enter a new rate in the field and change the agency name if needed.
  • Step 5: Review the changes you made and click ‘Save’ to complete the tax rate.

Step to edit an agency’s name:

  • Step 1: Open QuickBooks Online and select ‘Taxes’ from the left menu.
  • Step 2: Go to the agency name you want to edit and press the ‘Edit’ button.
  • Step 3: Type in a new name for the agency and then select ‘Save.’
  • Step 4: Be sure to deactivate the existing tax name and rate before making any changes.

Step to edit sales tax settings:

  • Step 1: Open QuickBooks Online and select ‘Taxes’ from the left menu.
  • Step 2: Choose ‘Add/edit tax rates and agencies’ from the Related Tasks list.
  • Step 3: If your business charges sales tax, click ‘Yes’ and continue.
  • Step 4: As an optional step, you can set a default tax rate for new sales forms.
  • Step 5: For tax-exempt, you can select ‘Mark all new customers are taxable.’
  • Step 6: However, if you don’t charge sales tax, choose ‘No’ and ‘Save’ the changes.

Conclusion Implementing all the steps mentioned would be enough to help you set up sales tax in QuickBooks Online. In case you require any additional assistance, you can reach out to the experts at QuickBooks helpline number and get the perfect solution for your problem.