Sales Tax Tracking

Hi Andy Zhou, 

Tracking sales tax is an essential part of running a small business. It's so important to ensure your clients are recording the sales tax paid on purchases, as well as tracking the sales tax paid to them from their customers. Setting this up in QBO is simple, and I'd be happy to explain how to enable this in the account. 

To set up sales tax, click the Taxes tab on the left navigation menu. Then, click Set up sales tax. This will be a self-guided process, and it's really simple to do. 

QuickBooks Online automatically sets up a list of common Canadian sales tax codes for you, based on where your company is located. Here's a list of common sales tax codes: Common sales tax codes. 

If you need to set up a sales tax code that isn't already available in QBO, click the Taxes tab, then select Manage Sales Tax > Add Tax. 

When your client records a purchase, they'll have the option to select the appropriate tax code associated with it. You can then review tax reports to assess/track the taxes paid on purchases, which can be found by clicking Reports on the left navigation menu (scroll down until you see the Sales Tax section). 

Here's more information about the Sales Tax centre you may find helpful: Using the Sales Tax Centre (STC).

I hope this gets you back to business. If you have any other questions, please don't hesitate to reach out to our tech support team. 

Cheers.