The QuickBooks Sales Tax screen houses all of the options that pertain to Sales Tax. If you do not sell anything and only offer services that do not require sales tax, you do not need to use this section.

All options for this section are in the Company Preferences tab.

• Do you Charge Sales Tax?
  • If you choose No, then all options on this screen will be grayed out.
• Set up Sales Tax Item
  • This section allows you to add items that need sales tax. To add an item, click the Add sales tax item… button.
• Assign Sales Tax Codes
  • This is where you can assign codes for taxable and non-taxable items. The defaults are Tax and Non. If you wish to display a “T” for taxable items when printing, click the check box in this section.
• When do you Owe Sales Tax?
  • Choose from the options in this section to tell QuickBooks when you owe QuickBooks Sales Tax. If you choose As of Invoice Date. You are working from an accrual basis. If you choose Upon Receipt of Payment you are working from a cash basis.
• When do you pay Sales Tax?
  • Choose when you pay your sales tax. You can choose from Monthly, Quarterly, or Annual.