QuickBooks 2007 on Demand

6. Collecting and Paying Sales Tax

What You’ll Do

Set Sales Tax Preferences

Create a Sales Tax Item

Create a Sales Tax Group

Charge Sales Tax to Customers

Enter Tax Status of Inventory Items

Sell Tax-Exempt Items

Sell Items to Tax-Exempt Customers

Produce Monthly Sales Tax Reports

Pay Sales Tax

Take a Discount for Early Payment

If you sell items at retail and the items you sell qualify for sales tax, you are expected to collect sales tax from your customers at the time of the sale and remit that tax to the government on a timely basis.

Because sales tax appears as a separate item on your invoice forms, you must set up a Sales Tax Item in QuickBooks to accommodate the presence of the tax on forms. After you’ve set up an item, the tax flows ...