How to Change Sales Tax Rate in QuickBooks?
QuickBooks, offered by Intuit, is a highly customizable accounting software. The process of calculating and filing taxes is substantially simplified through various inbuilt features. Users can purchase tax forms through QuickBooks, though most of these forms are meant for payroll taxes such as W2s, W3s, 1099s and so on. QB is completely compatible with most operating systems such as windows, android, mac, and iOS.
Tax preferences can be easily customized in QuickBooks. Sales tax is levied on sales receipts by the government. It is the responsibility of the retailer to collect sales tax at the point of sale from customers and then pass it on to the government. Every corporation is aware of the fact that tax penalties can significantly besmirch their reputation.
To create a new sales tax rate, follow the steps given below:
- From the menu, select Edit. Users who can’t view the menu can press the command or alt option. This makes the toggling menu a cakewalk.
- Select Preferences and you will see a dialogue box appearing.
- Select the Sales tax icon. Under this option select Company Preferences.
- The company preferences tab depicts an option of “Do You Charge Sales Tax”. Select the option and proceed to add all the items on which you want to levy a sales tax.
- Hit Add Sales Tax item.
- You can also enter a name and some description for sales taxes. Enter the rate for sales tax along with state agency. Hit Ok twice.
- Upon completion of these steps, you would be able to apply this particular sales tax on multiple other items. QuickBooks also supports many sales tax and sales reports. These reports can be classified on the basis of myriad parameters. It is always a better idea to input the tax rate inside the name field as well. This will simplify the tracking and changing process. QuickBooks has added features that can notify you about changing tax rates. You can use this feature in order to stay up to date with all the tax rates.
- Now let’s see how we can change sales tax rate in QuickBooks. This isn’t an arduous process, just a bit lengthy. We will first change the tax rate and then delete all previous tax rates applied on a particular item.
Follow the steps given below in order to change sales tax rate within your accounting software.
- Create Sales tax on an item by following the steps given above or select a previously created one.
- Go to Preferences from the edit menu. Select the sales tax icon.
- Click on Company Preferences tab.
- Create a new sales tax and apply it on the item.
- Now open the item list and select all the old sales taxes applied on a particular item.
- From the drop down options, select “Item is inactive.”
QuickBooks enables users to defer the application of new tax rates on products and services. You can apply tax rates on a later date. By creating multiple sales taxes on an item, you can easily activate the saved rates on a later date. Just make sure to mark, all the other sales tax rates applied on a particular item, as inactive.
You can also follow these steps to change tax rates in QuickBooks:
- Open Sales Tax from the left navigation panel.
- Select Add/Edit button to edit the tax rates and the agencies associated with it.
- The above option would be available under related tasks.
- A new table will appear. All your sales tax rates will be presented in this table. You can edit any rate by double clicking on it.
- Make sure to change the name and description of the Sales tax while changing the rate and click on Save.
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