I am an Ontario-based business but performed a service in Alberta. How do I add a different tax rate to an invoice?

Hi there,

Handling out of province taxes can be tricky, but don't worry, I got your back. I'll be happy to give you a hand with adding a different tax rate to an invoice. 

QuickBooks Online makes it easy to add a tax rate here are the steps:

How to set up a new sales tax code

1.     From the left menu, select Taxes.
2.     Select Sales Tax. (Tip: If you use payroll in QuickBooks Online, you may need to select Sales Tax as opposed to Payroll Tax.)
3.     Select Manage sales tax.
4.     Select Add tax.
5.     Under What type of tax do you want to add? select Add next to one of the below options and follow the prompts to complete set up.

For Provincial:

•     This option will automatically set up any new agencies necessary (such as new PST agencies) and the most common codes for that province/territory.
•     It will prompt you to choose a province or territory from the drop-down. (Tip: Only provinces that you haven't yet set up will be listed.)

For Group rate:

•     This option will let you combine any existing tax codes into a “combo rate”.
•     For additional information on group sales tax rates check out How do I add a group sales tax rate?
•     For more information on one of the most common group rates check out How to set up a sales tax rate for Meals and Entertainment.
   

For Group rate:

•     This option will let you combine any existing tax codes into a “combo rate”.
•     For additional information on group sales tax rates check out How do I add a group sales tax rate?
•     For more information on one of the most common group rates check out How to set up a sales tax rate for Meals and Entertainment.

For more info on adding a tax rate in QBO, check out this helpful article from our Community: How to set up a new sales tax code.

Once you've set up the new tax rate, you can apply it to your invoices. To do this, open an invoice > enter the line items > click on the Sales Tax drop-down and enter the appropriate tax rate.

In case you have other questions, feel free to contact our support team using this link here.