A tax table represents two things. The amount or percentage to collect on a invoice
and the account on which this money will go.
The account must therefore be a expense account for vendor
invoices since you pay taxes
and it should be a income account for customer
invoices since you collect taxes.
It will be then possible to associate any tax table with any invoice and to generate detailed tax reports
- Click on Business / Sales Tax Table .
- For the Tax Tables column, click on New.
- Fill all details about the tax and click OK.
If your country or state needs you to collecte more than one taxes, for example in Quebec where both TPS and TVQ has to be charged, you can see add more than one tax in a tax table
to see how to proceed.