How to Apply Sales Tax to an Invoice in QuickBooks

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In Brief...

When you record a sales transaction in QuickBooks, you can accept the default tax or choose a different tax item if needed. QuickBooks calculates the sales tax amount for the sales transaction. To apply tax to an invoice, follow these 11 steps.

This feature works the same in versions 2011–2016 of QuickBooks.

Instructions

  1. On the Home page, click Create Invoices.
    Create Invoices

  2. From the Customer drop-down list, select the customer to invoice.

  3. In the Date field, type or select the invoice date.

  4. In the Invoice # field, type the invoice number or select the default number.

  5. If a purchase order is associated with the transaction, type the number in the P.O. No. field.

  6. From the Terms drop-down list, select the payment terms.

  7. In the first row of the invoice detail table, select an item being invoiced from the Item drop-down list.

  8. In the Quantity field, type the quantity for the selected item.

  9. Repeat steps 7 and 8 for each item you need to invoice.

  10. If you need to apply a different tax than the default tax, select the sales tax item from the Tax drop-down list.
    Create Invoice Box

  11. Verify the sales transaction information, then click Save & Close.

Author: Lee Fifield

Lee is a writer, editor, and technology evangelist. Lee received her undergraduate degree in Communications from Ithaca College.

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