Lesson 5-4: This free QuickBooks tutorial will show you how to create a Sales Tax Group. The reason why you may need to create a sales tax group is because QuickBooks only allows you to choose one sales tax item on any invoice that you create. In lesson 5-2, I created a sales tax item for the local sales tax, and in lesson 5-3, I created a sales tax item for state sales tax. Sometimes you may do business with a customer that only has to pay local sales tax or you may do business with a customer that only has to pay state sales tax. However, if your company does business in an area where your customers are required to pay state and local sales tax, then you must create a sales tax group because that’s the only way you can charged both tax rates at the same time. Before you can create a Sales Tax Group, the individual sales tax items must be created first. In this tutorial, I’m going to create a sales tax group using the state and local sales tax items that were created in lesson 5-2 and 5-3. To create a sales tax group, perform the steps in the video.
1. Click Lists on the menu bar, then click Item lists.
2. Press CTRL + N on your keyboard or click Item in the lower left corner, then click New.
3. Select Sales Tax Group from the Type drop-down menu.
4. You must name the group, but a description for the group is optional.
5. The next step is the most important. In the field at the bottom of the window, you will select the sales tax item that you want to include in the group. Be advised that the sales tax items must be created before you can add them to the group. After you make your selections, you will see the total sales tax rate at the bottom of that field. Click OK to save your changes.
6. Create an invoice to test your new sales tax group.