Learn how to switch to Automated Sales Tax in QuickBooks Online.
If you are using Manual Sales Tax Center, you can migrate to Automated Sales Tax to calculate, collect, track, and remit sales tax easier.
|Important: This feature only supports company files that use accrual accounting. If you are using cash basis, you can set the accounting method to accrual. Then, after you activate Automated Sales Tax, revert to cash basis.
How does this affect the Sales Tax Center, reporting, and more?
If you select Taxes from the left menu, the page explaining the benefits of Automated Sales Tax feature opens.
Select Continue to old tax center if you want to stay with manual sales tax tracking. State the reason and confirm that you don’t want to make the switch. Then, you’ll be redirected to your existing sales tax center.
Select Make the switch to migrate to Automated Sales Tax. Then, follow the steps below:
Note: We base tax calculations on this address so it’s important that it’s correct.
The setup is complete. You’ll see a breakdown of the general sales tax rate(s) based on your company’s location. This page also explains that your rates will change based on shipping and special tax rules.
Sales Tax data for transactions you created after migrating to the new tax center are available in the History section. Data from transactions that you created prior to migration will not show (but don’t worry it isn’t missing). Simply run the Sales Tax Liability report and filter for the appropriate dates.
The sales tax amount on existing transactions prior to migration will also not be affected. But, if an edited transaction changes the taxable total, automated sales tax re-calculates the sales tax amount.
If you want to use manual sales tax again, follow the steps below:
You can still override the automated sales tax calculation on your sales transactions. If the override does not work and you still want to be removed from automated sales tax, contact Customer Care.
|Important: After disabling Automated Sales Tax, either by performing the steps above or contacting Customer Care, you can no longer re-enable the feature.|