If you use one tax or tax group more often than any other, you can automatically apply that tax when you enter a sale.
If you set up a tax item when you created your company file, QuickBooks uses it as your most common tax. To use a different tax item or group as your most common tax, follow the procedure below.
As of invoice date | You are liable for tax from the moment you write an invoice or make a sale (accrual basis). |
Upon receipt of payment | You are liable for tax only when you receive cash from a customer (cash basis). |
Your choice determines the amount you owe in the Pay Sales Tax window, and determines the amounts displayed in the sales tax liability report.