QuickBooks for Mac 2014 User’s Guide 195
When you sell something, apply tax to a sale
When you fill out an invoice or sales receipt with taxable items, the bottom of the form automatically shows the
tax item. QuickBooks uses that tax item to calculate the tax for the sale. The tax amount appears on the form,
below the other line item amounts.
If you need to apply a different tax to the sale, select a different tax item from the list on the sales form.
QuickBooks then recalculates the tax by using the rate for the tax item you selected.
Find out how much tax you owe
As you write invoices and sales receipts, QuickBooks automatically tracks how much tax you owe in your Sales Tax
Payable account. When it’s time to pay your tax agencies, you need to know what you owe and to whom. To view
your tax liability, choose Reports > Vendors & Payables > Sales Tax Liability. The report shows your total taxable
sales as of a date you choose, the total nontaxable sales, and the amount you owe each tax agency.
Pay your tax agencies
When it’s time to pay your sales tax, choose Vendors > Pay Sales Tax to see how much you currently owe to each
tax agency. You can then write a check to each agency. Once you’ve paid, QuickBooks automatically updates your
Sales Tax Payable account.
In a nutshell, that’s how sales tax works in QuickBooks. If you need more detail on using any of the features in this
article, the Help in QuickBooks gives you step-by-step instructions.
Setting up tax rates and agencies
If you collect one tax for one agency, you may have already set up your sales tax rate and agency when you
created your QuickBooks company. If you did not, complete the first and third steps listed below.
If you collect several taxes:
Step 1: Create a tax item for each single tax you apply. (See page 68.)
Step 2: Set up tax groups (if needed). (See page 68.)
Step 3: Identify your most common tax.
Identifying your most common tax rate
If you use one tax or tax group more often than any other, you can automatically apply that tax when you enter a
sale.
If you set up a tax item when you created your company file, QuickBooks uses it as your most common tax. To use
a different tax item or group as your most common tax, follow the procedure below.
To identify your most common tax rate:
1 Choose QuickBooks > Preferences and click Sales Tax.
2 Select the “Customers are charged sales tax” checkbox.
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