How do you set up sales tax in QuickBooks Online?

• A. Taxes > Sales Tax > Add tax rate; define jurisdiction and rate, and assign to items or customers as needed.
• B. Accounting > Tax Settings > Enable tax.
• C. Sales > Tax Center > Create Tax.
• D. Invoicing > Tax Rules > New.

Answer: (A)

Setting up sales tax in QuickBooks Online starts in the Taxes area. You create a tax rate by going to Taxes, then Sales Tax, and selecting Add tax rate. Here you define the jurisdiction (where the tax applies) and the tax rate, and you can then assign that tax to items or customers as needed. This workflow matches how QBO handles sales tax: establish the rate and where it applies, then attach it to the appropriate products/services or customer profiles so the correct tax is collected automatically on invoices and sales receipts. The other paths don’t reflect QuickBooks Online’s actual navigation for sales tax setup, such as options that aren’t part of QBO’s tax workflow or menu structure.