Using default customer sales tax codes

It is now possible to set up a default tax code for each of your customers in QuickBooks Online.

Under each customer record you can select a code that will be automatically populated in each transaction assigned to that customer, saving time, and reducing the chance or error.

In this video I walk through the steps to do that.

If you have any questions, or would like further information please don’t hesitate to reach out.

Video Transcript:

Hi Kerry here from My Quick Book keeping. As I mentioned in my recent newsletter, you can now set up a default tax code for each of your customers. Why would you want to do this? Say you have a customer in another sales tax jurisdiction and when you sell goods to them you have to use a different sales tax rate to that you would normally use. By setting this up as a default, you’ll automatically have that rate come up when you invoice them. It’ll save you time and also, maybe reduce the chance of errors. I’m going to use the sample company to show you how to set this up.

So here we are in the sample company on the dashboard, we pop across to sales and here we have all of our customers listed. So let’s see which customer do we want to set up a code for, let’s go to Benjamin Young. Open it up and edit and here we have it a set of options the address, says he’s in Ontario. Let’s move this to Quebec, let say he’s in Quebec now. Definitely not Barrie, but we’ll live with that. So we’ll go to our tax information here and we have the option to assign a default tax code. I’m going to go click and here I’m going to choose the Quebec tax and I’m going to save it.

Now, if we’re going to create an invoice for Benjamin, we’ll just choose any product or service, some employee training. You can see that the sales tax code that’s popped up is the one that we need for Quebec, this will save you a lot of time and you’re less likely to make a mistake. So now, let’s just do this for a different customer. So we’ll go back to our customer list. I will pick echo designs here, let’s see where they are—Nova Scotia. I don’t think I’ve set up a tax code for Nova Scotia, let’s pop into that. Go to taxes, add a tax for another province or territory—Nova Scotia, there we go. So we already have. Pop out of here, back to our customer. Eco Design sets, edit, go to the tax information, once again we have the option— assign a default tax code and here it is, the HST Nova scotia and we save.

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