QuickBooks Online can automatically track your sales tax for you through the Tax feature. To use the tax feature, you need to first turn it on and then create your tax codes as necessary.

  • If you are using QuickBooks Online in Malaysia, Singapore, United Arab Emirates, or South Africa, a default set of GST/VAT codes are created for you automatically.

To turn on tax tracking (for all versions):

  1. Click Tax on the left menu and click Set up tax
  2. Set up the tax agency details such as the name of your tax agency, any official tax number that has been assigned to your company, your reporting method, how often you file your tax to your tax agency, and whether this tax is meant for sales or purchases, etc.... Click Next.
  3. Follow the steps to finish the setup and click Done.

Once sales tax is set up, you'll see the Tax Centre. Also, you'll see a Tax/GST column on your sales and purchases forms.

To add tax codes:

If you are in Malaysia, Singapore, United Arab Emirates, or South Africa QuickBooks Online automatically creates default tax codes for you.

You can create additional tax codes if necessary.

Important: if you need to change a tax rate, we recommend you create a new tax code instead of updating an existing one because the existing code may have been used on prior transactions and changing the rate could affect your sales tax tracking. 

  1. In the Tax Centre, click Add Tax.   
  2. Choose which type of tax code you want to set up.
  3. Enter the details of your tax code. If you need help with this screen, click the help button (yellow question mark).
  4. Click Done when finished.

To add group tax:

Important: group tax, once created, cannot be edited or deleted.

  1. In the Tax Centre, click Add Tax.
  2. Select "Group Rate" and click Next.
  3. Enter the Tax Code and Description.
  4. Select the Tax Rate and where it applies to Net, Tax or both.
  5. Click Done.
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