I created a bill to reimburse a shareholder for a number of expenses. how can I enter the sales tax amounts for each item?

Hi there rashel95,

Entering bills in QuickBooks Online is a fantastic way to record your business expenses. This makes tracking your business' profits a whole lot easier. You're on the right track with this, so let me give you the rest of the steps you'll need to be able to add sales tax to your bills.

The first step to be able to add sales tax to a bill is to ensure that you've set up sales tax within your QuickBooks account. To get set up you'll want to navigate to the Taxes tab and select Sales Tax. If you've already set things up you'll see your relevant tax agencies, but if not you'll be prompted to get started. Follow the steps on screen to get things set up. Once complete you should see your new sales tax agency and if you hit Manage sales tax you'll see the codes you've set up within that agency. If you'll need to track sales tax for multiple provinces, simply follow the steps in this article to get your additional codes set up: How to set up a new sales tax code.

From here, you'll have a new column within your transactions for Sales Tax. Navigate to the bill you've created or use the + New button to create a new one. For each line item or category that you enter you'll be able to select a corresponding sales tax code by using the dropdown within the row. You'll need to select a sales tax code for each line you enter, otherwise QBO won't allow you to save the bill. You'll have the option to choose from Exempt, Zero-rated, and Out of Scope when it's not necessary to add tax. Check out our article on Common sales tax codes to learn more.

If there's more you'd like to know, don't hesitate to reach out again here in the Community. You'll be likely to hear from QuickBooks team members like myself, as well as other QuickBooks users like you. Have a great day!