In states where it’s required, you may have to at least set up a state sales tax item in QuickBooks. Make sure the Yes button is highlighted next to Do you charge sales tax?, then click on Add sales tax item. Click on Sales Tax, then Company Preferences.
Open the Edit menu and select Preferences. Once you know what your state’s rules are, you can start setting up the sales taxes you’re required to collect and pay. You can’t begin to work with sales taxes in QuickBooks until you know the answers to many questions. Or talk to us about this whole complicated process. If you don’t know your state’s rules, search for your Department of Revenue (sometimes called the Department of Taxation) on Google. How often must you submit what you owe, and to what agency?
What local taxes (city, county, etc.) must you collect, if any? Is your company located in a destination-based or origin-based state where taxes are concerned (do you charge sales tax based on where your customers are or where you are)?Ĭertain types of items and services are exempt from sales tax. QuickBooks can help with the mechanics, but there’s a lot you need to learn before you can start charging and paying them. Next to payroll, state sales taxes represent probably the most complex element of your accounting tasks.
