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Experienced Member

Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax rate for whatever city we are serving

 
16 Comments
ProAdvisor

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax rate for whatever city we are serving

Hello @accounting40:  You should see the option in sales tax where you can go back to the old style of sales tax.

 

But the new way does go by the shipping address, so it should process the sales tax properly for you. 

 

Lynda

Established Community Backer ***

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax rate for whatever city we are serving

In Texas sales tax is ONLY destination based if you go to another city/county and perform some services.

 

If you sell on line, then sales tax is origin based, you only collect sales tax for your city, county, state

ProAdvisor

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax rate for whatever city we are serving

Since it appears to be very complicated in Texas, perhaps use the app for sales tax called tax jar or alavara?  They are both excellent for sales tax. They are an "add on" application but perform much better than the one recently embedded into QBO.  If you need/use it and want it automated, that would be my suggestion.  If you only need it sparingly, you can turn it back to the prior "classic" sales tax.

 

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Established Community Backer ***

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax rate for whatever city we are serving

No avalara is useless in Texas as is Taxjar

 

Texas allows the business to decide if they will pay sales tax using cash or accrual basis - both software companies are ONLY accrual based sales tax with no option to change basis.  Their laughable suggestion is to manually do the computations for sales tax payable if you are cash based, make adjusting entries in the sales tax payable account, then pay sales tax - and they want to be paid too.  Explain that to an auditor!

 

Both software companies work off the ship to address, which is fine for those businesses who travel, but for stand alone or internet sales, that would require that you add in your own address as the ship to address, more work than needed

ProAdvisor

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax rate for whatever city we are serving

So, @Rustler, do you have a work-around?  I thought Avalara worked for everyone? Sounds like the sales tax situation is not fun in Texas!  I think Florida is trying to ruin what they have here and mirror your state.  This year they just complicated it too.

 

Lynda

Established Community Backer ***

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax rate for whatever city we are serving

Sales tax works fine in QB for Texas based businesses

 

Texas is easy IMO,. cut an dried, collect sales tax for the place you physically do the work or make the sale.  We used to have destination based sales tax for all, it was a mess to keep up with.

 

complicated> try California, or Louisiana, or

Established Member

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax rate for whatever city we are serving

QB only uses the State Tax of 6.25% . 

There is still local taxes that need to be incorporated..yes based on where you do the work. But in almost all places this is an additional 2%. 

I have to manually change the 6.25% to 8.25% for every single transaction within QB. 

Having the option to add an additional 'Local Tax' would be ideal. 

Is there a way to do this? 

QuickBooks Team

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax...

Hi there, @Sandra Showalter.

 

Let me help show you how to add an additional sales tax in QuickBooks.

 

Here's how:

 

  1. Go to Taxes and click Sales Tax.
  2. Click the Add/Edit tax rates and agencies on your Sales Tax Center.
  3. Select New tab to add a new tax rate.
  4. Fill in the details on the New Sales Tax Rate window.
  5. Once done, click Save.

 

 

On your transaction form, you can select the correct sales tax rate by clicking the drop-down arrow for the sales tax field.

 

 

 

That should do it. I'll be here to help if you have other questions about sales tax. Have a good one.

 

ProAdvisor

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax...

Lily, this is a beautiful demo/workflow!
Established Member

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax...

Thank you, Lily. 

However, I don't have these options available. As I had set it up to do the auto tax. 


I was looking for a way to return to the classic tax system but can't seem to find it. 

Right now, I do manually change the tax individually on every invoice. 

Sandra

QuickBooks Team

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax...

Hi Sandra Showalter,

 

You're doing the correct way to override the tax amount. However, we don't want to stay this way. Having said that, it's best if one of our phone agents can see your setup and check this further. Also, they can check if it's still possible to revert your interface to manual sales tax.

 

Here's how to get their number:

  1. Open this link: https://help.quickbooks.intuit.com/en_US/contact.
  2. Click on Search for something else.
  3. Scroll down and click the Get Phone Number button.

If you need anything else, feel free to get back here.

Experienced Member

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax rate for whatever city we are serving

I do... mobile computer and IT service... we were informed by the comptroller that we had to collect the correct sales tax rate for each city we serve... aka  Addision, Dallas, Irving, Ft. Worth, Arlington, Granbury, Glen Rose, Weatherford, etc.


Experienced Member

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax...

This has been my original COMPLAINT since I started this thread, and obviously I am not the only one...     Unfortunately QBO support is not available on my "slow days" or down time.   I'll schedule a play date to speak with support about fixing a problem that should not exist - if you would simply turn on the OLD SALES TAX methods 

 

 

QuickBooks Team

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax...

Hello there, Accounting40.

 

We're always striving to provide a good service to our customers. If overriding the sales tax won't work for you and you want to be removed from the auto sales tax feature, please get in touch with our customer support. As what my colleague @JessT said, they might find a way to revert you back to the old sales tax. Just follow the instructions on how to contact the support. The QuickBooks Online Customer Care is open from Mondays to Fridays at 6:00 am to 6:00 pm PST.

 

Feel free to post in the Community if you have other concerns. 

Established Member

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax rate for whatever city we are serving

I agree 100%.  The new Automated Sales tax DOES NOT work for Texas.  What's worse I have been told that if you are new to QBO and came on after the new Automated Sales tax you never had the option of using the Old system and, therefore, you cannot go back to the old system.  You are stuck with a worthless program.  Intuit, needs to give users the option of using Cash or Accrual basis and also to pick if you want to use the shipping address or the origin location to calculate sales tax.  Somewhere Intuit got the misguided idea that Texas is an origin based state, and will only calculate sales tax based on the shippers location making it necessary to override the tax amount but then your sales tax reports are worthless because all taxes are still shown for the shipper's location.  Taxes, however, need to be filed by City and/or county.

Highlighted
Moderator

Re: Automated Sales tax needs to be turned off - period. In Texas we have to charge the sales tax...

Thanks for joining the conversation, CASProfessional.

 

Let me share some insights about the Automated Sales Tax feature in QuickBooks Online (QBO).

You're right that the newly signed up QBO users have no longer an option to manually enter sales tax. As mentioned previously, our workaround is to manually override the sales tax amount on each transaction. This will let you enter the correct percentage or amount on an invoice or sales receipt.

 

Let me show you how:

  1. Click the Plus sign icon at the top, then choose Invoice or Sales Receipt.
  2. Enter the needed information.
  3. Select the Sales tax hyperlink.
  4. Click the Override this amount link.
  5. Enter the details and click Close.

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For more details about sales tax, please check this link: Automated Sales Tax Hub.

 

I'll definitely pass along your experience. Our engineers make improvements in QuickBooks Online by listening to our customers' suggestions and comments.


Thanks a lot for raising this concern. 

 

That should get you back on track. Please let me know how that works for you. I'll be here and ready to help anytime. I'm cheering you to continued prosperity.