Global Sales Tax Rules

The settings mentioned in this article refer to: Configuring Team Accounting Settings

US Companies

General Settings

1. Set the Sales Tax Account setting to match the sales tax account that is configured in Quickbooks. (Optional)
2. Set the Sales Tax Payee setting to match the sales tax vendor that is configured in Quickbooks.
3. Set the Sales Tax Rate setting to the sales tax percentage, e.g. 8.2.
4. Set the Tax Exempt code setting to NON.

Labor

1. Check the Taxable check box to enable or disable sales tax for labor items.
2. Set the Labor Tax Code to TAX for taxable labor.
3. Set the Labor Tax Code to NON for non-taxable labor.

Parts

In the United States, sales tax is applied based on State rules where your business is located.

1. Check the Taxable check box to enable or disable sales tax for parts items.
2. Configure Parts Tax Code settings to NON for tax exempt sales.
3. Configure Parts Tax Code settings to TAX to apply sales tax to parts sales.

Non US Companies

For Non-US companies, various sales tax codes are applied for each invoice line item.

Labor

1. Check the Taxable check box to enable or disable sales tax for labor items.
2. Configure the Labor Tax Code settings to match the Tax Name configured in the Quickbooks Sales Tax / Rates and Settings area.

Parts

1. Check the Taxable check box to enable or disable sales tax for parts items.
2. Configure the Parts Tax Code settings to match the Tax Name configured in the Quickbooks Sales Tax / Rates and Settings area.

Example: Canadian Tax Rates and Settings

Set Parts Tax Code settings to HST ON
Set Labor Tax Code settings to Zero-rated
Set Tax Exempt Code to the desired tax code to use for tax exempt items, e.g. Zero-rated or Tax-exempt