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How to handle sales tax

Charge the right rate, know what you owe, and file on time.

about 4 min to read

1. Setting your rate

  1. 1Open Settings and enter your sales tax rate, or pick your state.
  2. 2Mark any product that is exempt on the Products page so it is never taxed.

2. Day to day

  1. 1Tax is added automatically on every sale and invoice.
  2. 2The Sales Tax page shows how much you have collected and not yet paid over.
  3. 3Remember: collected tax is not your money. Keep it aside.

3. Filing

  1. 1Open Sales Tax and choose the filing period your state uses — monthly, quarterly or annually.
  2. 2Use the totals shown to fill in your state's online return.
  3. 3Record the payment so your books and your bank agree.

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