How to Set Up Sales Tax in QuickBooks 2016 - dummies

How to Set Up Sales Tax in QuickBooks 2016

By Stephen L. Nelson

QuickBooks 2016 makes it easy to collect and record sales tax when necessary. You probably want to check with your local sales tax revenue agency to determine whether sales tax should be calculated before or after the discount. If you need to collect sales tax, and you didn’t set up this function in the QuickBooks Setup, follow these steps:

  1. Choose Edit → Preferences.

    The Preferences dialog box appears.

  2. Click the Sales Tax icon in the list on the left, click the Company Preferences tab, and then select the Yes option button in the Do You Charge Sales Tax area.

  3. Add the Sales Tax item(s) to your Item list.

  4. Click the Add Sales Tax Item button.

    When QuickBooks displays the New Item dialog box enter a name for the sales tax into the Sales Tax Name box, the sales tax rate into the Tax Rate box, and the state agency you remit the sales tax to in the Tax Agency box. Click OK twice after you’ve done this to close the New Item dialog box and the Preferences dialog box.