How can I handle a sales tax that is based on quantity rather than revenue?
Since you cannot modify the amount of sales tax charged at the bottom of sales forms in QuickBooks, this solution shows how to add sales tax items directly on the body of sales forms.
Note: This solution also works for "tiered" taxes such as excise taxes.
This section shows how to track sales taxes based on a quantity other than the amount of the sale, for example a per-night hotel tax or a per-gallon gasoline tax.
Follow these steps:
Step 1. Set up Sales Tax Items for any taxes that are based on a quantity rather than the dollar amount of the sale. For example, you might set up a sales tax item called "Hotel Tax" if you needed to charge a tax for each night in a hotel room. Set the tax rate to 0%. This is because you cannot enter a dollar amount here. You’ll override the rate on each sale.
Step 2. Create an Invoice or Sales Receipt and enter the item or items that are subject to the quantity-based tax. If you have more than one line item, add a subtotal line after the last sales item on the form.
Step 3. To charge the Hotel Tax, use the Hotel Tax Sales Tax Item as a line item in the body of a sales form directly below the line (or subtotal of lines) that are subject to the Hotel Tax.
Note: When you enter the Hotel Tax Item onto the sales form, QuickBooks enters 0.00 in the Amount column. Override this amount by entering the tax directly in the Amount column. This is necessary because the tax is not based on a percentage of the sales amount, but on a per-night basis. Sales Tax Items can only calculate percentages of Amount columns of taxable items.
Step 4. Enter the sales tax amount in the Amount column of the Hotel Tax line.
Note: In addition to charging the hotel tax you specify, the total revenue of the line above that tax will show on your sales tax revenue and liability reports.