How To Add Tax Rates in QuickBooks Pro
- Under “Sales Tax” click on “manage Sales Tax”
- Under the “Sales Tax Setup” menu on the right hand side, click on “Change Tax Setup”
- Several different options are now displayed.
- For this example, the combined tax for Quebec will be added.
i. Quebec has a
- GST rate of 5%
- PQ rate of 9.5%
ii. However, the PQ rate is applied to the total of the item and the GST.
- After calculating this out, the combined GST and PQ on the items and GST equals out to a 15% combined tax rate.
- For this example, the first option of adding the Quebec tax rate will be used.
i. Select the first option, and then click “Finish”
- Select “Create Taxes for QC” and then click on “OK”
- After clicking on “OK” the following table shows.
- The two tax rates for Quebec is shown here as SQC which is a combination of the GST and the QST applied to the price of the item and the resulting GST.
- Therefore, there is no need to add a separate tax rate for Quebec.
- To automatically calculate the taxes to invoice customers, choose the SQC tax rate for Quebec and all the applicable taxes will automatically calculate.
- In older non updating QuickBooks Pro, this SQC is not present and a flat rate 15% tax rate should be added instead.