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Do you need to show multiple tax rates on an invoice? Invoices are bills that request a payment from customers. After performing a service for a customer, you can send him or her an invoice. The invoice should include a list of the service or services performed for the customer as well as the taxes. While most invoices will typically have a single tax rate, though, some of them may have multiple tax rates. If you use QuickBooks Desktop, you can show multiple tax rates on invoices by following these steps.

Create Sales Tax Items

Start by creating a sales tax item for each sales tax that you want to show on the invoice. To show two sales tax rates, for instance, you’ll need to create two sales tax items.

You can create sales tax items in QuickBooks Desktop by navigating to “Lists” and choosing “Item List.” Next, right-click an open space in the window and select “New.” You can then choose “Sales Tax.” After completing the necessary fields, the new sales tax item will be added to your account. Make sure you create a sales tax item for each sales tax that you want to show on the invoice.

Create a Subtotal Item

You’ll also need to create a subtotal item. Go back to the “Lists” menu and choose “Item List.” Right-click any open space in the window and select “New.” For the item type, choose “Subtotal.”  QuickBooks Desktop will ask you to enter some information about the subtotal. You’ll have to enter an item name or number, for instance, as well as a description. When finished, click “OK” to complete the process. The subtotal item should now be added to your account.

Create the Multi-Tax Invoice

Assuming you’ve already created the sales tax items and subtotal item, you can now create the multi-tax invoice. Go to the “Customers” menu and choose “Create Invoices.” You can now enter the sales tax items. You should enter all of the sales tax items that you want to show on the invoice — the same sales tax items that you previously created.

Entering the subtotal item will generate a subtotal for the invoice. The invoice should contain all of the sales tax items as well as the subtotal. After completing the invoice, click “Save & Close.” You can now send it to the customer.

Did this tutorial work for you? Let us know in the comments section below!