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October 13, 2024
Question

Can i calculate multiple sales taxes on 1 sales invoice for example sale amount 200 then apply 2.5% and after this then apply 15 %

  • October 13, 2024
  • 1 reply
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1 reply

JaeAnnC
October 13, 2024

Yes, you can, Khalid. I'd be glad to share the steps on how to apply multiple sales taxes on an invoice in QuickBooks Online (QBO).

 

You can utilize the Group Rate feature to merge multiple tax rates into a single one. This allows all selected taxes to be calculated and applied simultaneously, while still being tracked separately.

 

If you haven't yet, create individual custom tax rates for the 2.5% and 15%. Here's how:

 

  1. Go to Taxes and click Add Tax.
  2. Select Custom Tax.
  3. Fill in the necessary fields and put a checkmark on the This tax is collected on sales box.
  4. Enter 2.5% in the Sales rate box, then Save.
  5. Repeat the same steps to enter another custom tax rate for the 15%.

 

Next, create a group rate to combine these two tax rates. To do that:

 

  1. Go to Taxes and click Add Tax.
  2. Select Group Rate.
  3. Enter the Group Name and Description.
  4. In the Tax Rate dropdown fields, select the two custom tax rates you created.
  5. Choose a condition under the Applicable on dropdown, then Save.

 

Once done, you can select the group rate tax under the Tax column when creating an invoice.

 

Moreover, QuickBooks can automatically calculate sales taxes if you categorize your products and services accordingly.

 

Keep me informed on any further questions you have concerning sales taxes. We'll always be glad to provide additional assistance. Wishing you a safe and productive day ahead.