How to Add a Sales Tax Item or Group to the Item List in QuickBooks 2012

If you sell items that are subject to sales tax, you also include line items on your QuickBooks 2012 invoices that charge for and track these sales taxes. To do this, you create sales tax items. To create a sales tax item, display the New Item window and select Sales Tax Item from the Type drop-down list.

When you do, QuickBooks displays the Sales Tax Item version of the New Item window. Use the Tax Name box to identify or provide an abbreviation for the sales tax. Use the Description box to give the sales tax a description. Finally, use the Tax Rate (%) box to identify the sales tax rate and the Tax Agency box to identify the tax agency that you will pay.

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In many jurisdictions, although businesses may charge a single sales tax on sales, the sales tax actually gets distributed to several different tax agencies. For example, a firm may be required to charge a 9 percent sales tax. But perhaps 1 percent goes to the local city government. Perhaps another 2 percent goes to the county government. And maybe the remaining 6 percent goes to the state government.

In this case, you can set up a sales tax group, which appears as a single line item invoice. However, the sales tax group is actually made up of individual tax items.

To add a sales tax group, display the New Item window and select Sales Tax Group from the Type drop-down list. Enter a name or an abbreviation for the sales tax into the Group Name/Number box.

Provide an appropriate description by using the Description box. Then use the Tax Item column to identify the individual tax items that comprise the sales tax group. Note that you should have already set up the tax items that you want to add to the sales tax group.

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