Glad to have you here, @shawnandcharlie.
Yes, you can charge sales tax to your customer when you bill them for the subscription. But it still depends if the client is subject to sales tax.
To verify, I suggest reaching out to your accountant for additional info regarding this matter. This is to ensure that you charge sales tax to the customer correctly and accordingly.
To set up your sales tax in QBO, here's what you need to do:
- Proceed to Taxes and choose Sales tax (Take me there).
- In the Related Tasks list on the right, select Add/edit tax rates and agencies.
- Click New and choose either a single or a combined tax rate.
- Enter a name for the tax, the agency you pay, and the percentage for the rate. Use a single rate if you pay just one rate to a single agency.
- Lastly, select Save.
For further details, please check out this article: Set up your sales tax in QuickBooks Online. It also includes steps on how to edit and deactivate your sales tax rate and settings.
In addition to that, let me attach this link if you want to automatically do the sales tax calculations for you on your invoices and receipts for easy and accurate filings: Set up and use automated sales tax.
Don't hesitate to tag my name if you have other concerns with recording payments for your customer in QuickBooks. I'll be around to help. Keep safe!
