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 the Malaysian/Singapore/ South African version of QuickBooks Online, a default set of tax codes for Malaysia/Singapore/South Africa are created for you automatically.
  • If you are using the International/Global version of QuickBooks Online, you'll need to create your own tax codes to match the tax system in your country. 

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 set up 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:

*Are you using the Malaysian/Singapore/South African version of QBO?  If yes, please note that QuickBooks Online automatically creates default tax codes for you. You can create additional tax codes if you want, but you should not have to.

Follow the steps below to create new or custom tax codes. 

Tip: if you need to change a tax rate, we recommend you create a new tax code instead of updating an existing one. 

  1. In the Tax Centre, click Add Tax.   
  2. Choose which type of tax code you want to set up.
  3. Enter in 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:

Follow the steps below to create a sales tax group.

Tip: group tax is not editable and once created, you will not have the option to delete them.

  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.