The sales tax rate in your area is changing. You are a current user of QuickBooks® software and you need to ensure the proper rate will be applied to all sales.
To ensure everything flows smoothly and accurately be sure to execute all three steps!
1. Add the new Sales Tax Item to the Item List (Lists > Item List).
- The Item Name will have to be different than what you are currently using. Consider putting the sales tax % on the Item Name. An example is “Sales Tax-OC (8.75%)”.
- This can be done in advance of the date your sales tax will change.
- If you use more than one sales tax item, be sure to add them all in.
- You cannot delete or change the rate on your existing Sales Tax Items because you need the Item to properly calculate your sales tax return.
2. Change your Sales Tax Preferences to use the new Item.
- Go to Edit > Preferences > Sales Tax > Company Preferences tab.
- When you create any sale (Invoice, Sales Receipt) or credit memo, this Sales Tax Item will now be used as the default.
- This can be done in advance of the date your sales tax will change ONLY if you will remember to change the Sales Tax Item on any sale. If you won’t, write a reminder to yourself to change this on the date the sales tax rate is effective.
3. Make the old Sales Tax Item inactive on the Item List.
- Go to the Item List. Double click the old Sales Tax item and click the box ‘Item is Inactive’.
- Do this on the date the new Sales tax is effective!
Don’t forget to change any shopping cart systems you may also be using!
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(This was originally posted in 2009.)