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CherieF
January 28, 2025
Question

Sales tax in Quickbooks Desktop

  • January 28, 2025
  • 1 reply
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Our business does both sales and rentals. Sales tax is due on sale items by the 20th of the month following the month in which the sale was made, regardless of when payment is collected. Sales tax on rentals is not due until the 20th of the month following the month in which the payment is actually collected. Is there a way to obtain separate sales tax reports for sales and rentals in Quickbooks desktop so we can report sales on the accrual basis and rentals on the cash basis? Thank you

    1 reply

    FishingForAnswers
    FishingForAnswers
    January 28, 2025

    @CherieF  Sort of.

     

    One thing you can do is create a sales tax item for each type of income.

     

    For instance, 6% - Sales and 6% - Rentals, or whichever sales tax rate applies to your region.

     

    You would still need to switch between accrual and cash basis when generating the report, but this would effectively keep the two types of sales separate on your report.

    FishingForAnswers
    FishingForAnswers
    January 28, 2025

    @CherieF  Oh, and if you needed them partitioned further on the sales tax report (for instance, if you already have multiple sales tax rates coming into play), you can make each of their sales tax items payable to a vendor with a slightly different name, or with {Sales} and {Rentals} listed at the end of two otherwise identical vendor names.

     

    This will allow you to still have different sales tax rates totaling by your sales or your rental categories.

     

    Anything listed between the {} brackets in Desktop won't print anywhere, so it's a convenient way to have multiple 'copies' of one vendor or employee or what have you.

    C
    CherieFAuthor
    January 30, 2025

    @FishingForAnswers Thank you for your suggestions! I will run some "dummy" invoices to try different methods.  I thought using separate sales tax vendors for sales and rentals would work, but then I realized that a single invoice can't have multiple sales tax vendors. Our customers want a single invoice at the end of the month. I appreciate your help!

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