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July 17, 2020
Question

How to show the tax amont for each line? I mean tax of each item / each line separately

  • July 17, 2020
  • 1 reply
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1 reply

AlcaeusF
July 17, 2020

Thank you for posting here in the Community, @Majed.

 

Let me provide clarifications about adding sales tax in transactions.

 

In QuickBooks Online, a direct way to add a separate sales tax to each item is unavailable. As a workaround, you can add a sales tax as an item and use the subtotal option to separate from other products and services (see screenshot below).

 

 

First, you'll need to create an Other Current Liability account:

 

  1. Select the Gear icon at the top, then Chart of Accounts.
  2. In the Chart of Accounts, select the New button.
  3. From the Account Type drop-down, choose Other Current Liabilities.
  4. Choose the detail type you want.
  5. Enter a name (example: Sales Tax Payable – Manual Adjustment).
  6. Select Save and close.

For the sales tax item, here's how:

 

  1. Select the Gear icon at the top, then Products and Services.
  2. In the Products and Services page, select New.
  3. Select Non-Inventory or Service for Item Type.
  4. Enter Sales Tax in the Name and Description fields.
  5. Leave the Sales price/rate field blank.
  6. In the Income account field, choose the account you set up in Step 1.
  7. Make sure it's nontaxable.
  8. Hit Save and close.

Lastly, add the item to your sales transaction:

 

  1. Create the invoice or sales receipt as usual.
  2. Add the sales tax item created.
  3. Manually enter the amount for the Sales Tax line item.
  4. Select Save and close.

Note: By using this method, you won't be able to pay sales tax through the Sales Tax Center since it uses a special liability account that you can't link to products and services.

 

I also recommend seeking expert advise from an accountant to ensure it'll be recorded correctly and to avoid errors in your books.

 

Additionally, here are some helpful references that you can check out about setting up sales tax, as well as creating invoices:

 

I'm only a few clicks away if you have any other questions. Wishing you and your business continued success.