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A
arkvalleyinfo
December 11, 2018
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How do you add tax to estimates and invoices?

  • December 11, 2018
  • 4 replies
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How do you add tax to estimates and invoices. I made an estimate but it doesn't show tax and I don't see how to enter. Thank you. First time user :)

Best answer by BettyJaneB

Hi there, sashajselectric,

I'd be happy to help you in setting up sales tax to your estimates and invoices.

Here's how:

  1. From the QuickBooks Edit menu, click Preferences.
  2. On the Preferences window, click Sales Tax then go to the Company Preferences tab.
  3. Click the Yes radio button to turn on sales tax.
  4. Set up the sales tax items or sales tax groups for each county, district, city, etc. where you collect sales tax. Click Add sales tax item to do this.
  5. Assign Sales tax code.
  6. Set the Sales tax basis (Accrual or Cash). Take into account your company’s accounting an preference.
  7. Set up your preference for paying the sales tax (Monthly, Quarterly, Annually).
  8. Click OK.

You can refer to this article for more details: https://community.intuit.com/articles/1501455-set-up-sales-tax

After setting up the sales tax.You can try to create an invoice or an estimate and see if a tax column will appear.

I've attached a screenshot for you to be guided through the steps.

Please let me know how it goes by leaving a comment below. I'll be here if you need further assistance. Thanks for choosing Quickbooks sashajselectric.

4 replies

BettyJaneB
BettyJaneBAnswer
December 11, 2018

Hi there, sashajselectric,

I'd be happy to help you in setting up sales tax to your estimates and invoices.

Here's how:

  1. From the QuickBooks Edit menu, click Preferences.
  2. On the Preferences window, click Sales Tax then go to the Company Preferences tab.
  3. Click the Yes radio button to turn on sales tax.
  4. Set up the sales tax items or sales tax groups for each county, district, city, etc. where you collect sales tax. Click Add sales tax item to do this.
  5. Assign Sales tax code.
  6. Set the Sales tax basis (Accrual or Cash). Take into account your company’s accounting an preference.
  7. Set up your preference for paying the sales tax (Monthly, Quarterly, Annually).
  8. Click OK.

You can refer to this article for more details: https://community.intuit.com/articles/1501455-set-up-sales-tax

After setting up the sales tax.You can try to create an invoice or an estimate and see if a tax column will appear.

I've attached a screenshot for you to be guided through the steps.

Please let me know how it goes by leaving a comment below. I'll be here if you need further assistance. Thanks for choosing Quickbooks sashajselectric.

    B
    Big B
    June 21, 2019

    Can you set up Fed. excise tax the same way, I make fishing lures and I have to charge 10% excise tax on each lure that I sale

    Barry

    A
    arkvalleyinfoAuthor
    December 11, 2018

    Ok thank you, I got that all. I am stuck now on what to put into the box Tax Agency (vendor who you collect for) 

    It sasys to add new but I'm not sure who the vedor is, is that the company info we are doing work for.

    Thank you as I am waiting to see my CPA who will be helping me more to learn quickbooks

    BettyJaneB
    BettyJaneB
    December 11, 2018
    Thanks for getting back to me @sashajselectric,
    Tax agency will be the agency that you're going to pay your tax. In this case, it would be your state agency.
    Feel free to leave a comment below if you need anything else.
    B
    Big B
    June 21, 2019

    How do I add federal excise tax to a invoice? I make fishing lures and I have to charge 10% excise tax on each lure.

    Thank you,

    Big B

    S
    ShiellaGraceA
    June 21, 2019

    Hi Big B,

     

    You can add the excise tax as a sales tax item then apply it in your invoice. Let me help you on how to get this done.

    1. Go to Edit, then Preferences.
    2. Click Sales Tax, then Company Preferences.
    3. Click Add sales tax item. 
    4. Under Type, choose Sales Tax Item. Then, type the Sales Tax Name, Description, Tax Rate (%), and the Tax Agency (vendor that you collect for).
    5. Click OK.

    To apply the excise tax, just add the sales tax item under the Tax column and the Tax drop-down in the invoice.

     

    Feel free to check out this handy article for details: Set up sales tax in QuickBooks Desktop.

     

    I've also added this article for future reference: How to resolve common sales tax issues.

     

    If there's anything else you need help with, please don't hesitate to swing by anytime.

    M
    mkk1llc
    May 28, 2021

    How do I set a default sales tax rate on an invoice? I have my local tax rate set up but on the invoice it has a drop down and I have to choose the rate. Would prefer to have it default to the most common rate we use. 

    MariaSoledadG
    MariaSoledadG
    May 29, 2021

    I have an easier way for you so you can select your default tax rate in QuickBooks quickly, mkk1llc.

     

    In QuickBooks Desktop, since you'll always have the option to add several tax rates that you can use, you'll have to select a tax rate when creating an invoice. You'll want to set up the most common sales tax item that you'll use to filter them and easier for you to choose. I've attached a screenshot for your visual guide. 

     

    In addition, you may need to make sales tax adjustments into or out of your Sales Tax Liability account, you can read this article for more information: Process sales tax adjustment.

     

    Feel free if you have any other concerns about your sales tax rate. I'll always be right here if you need help. 

    M
    mkk1llc
    May 29, 2021

    Thank you. I am using QBO and don't find a tax section under Account and Settings

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