Setup "Tax Paid on Bills" and "Default Tax Agency" in Quickbooks

To setup “Tax Paid on Bills” in QuickBooks:

-Click List
-Open Chart of Accounts
-Select New Account
-Set Other Account Types: Expense
-Set Account Name as “Tax Paid on Bills”
-Click Save & Close
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To setup “Default Tax Agency”

-Click Vendors
-Open Vendor Centre
-Select New Vendor
-Set Vendor Name as “Default Tax Agency”
-In Sales Tax Setting Tab:
>Check Box for “Vendor is a Sales Tax Agency”
>Set Tax Label as “Default Tax Agency”
-In Additional Info Tab:
>Set Vendor Type as ‘Tax Agency’
-Click OK