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Intuit

Manage a tax rate change

Learn how to handle changing tax rates.

Tax rate changes

Whenever a tax rate changes, you'll need to update your items and existing transactions to use the new rate. However, if you use preconfigured rates or you're a new user setting up a tax rate for the first time, the new rate will be added to your list of taxes automatically.

The following list of scenarios will help you determine where you need to update your rate.

Situations affected by tax rate changes

Manually adjust the rate for each item to the new value.

Manually adjust those transactions to use the new rate.

If the product or service will not be provided until after the date of the tax change, you'll need to manually adjust the rate on the invoice to reflect the new rate.

If you provided goods or services before the date of the tax change, but didn't issue the invoice at the time of the sale, you'll need to adjust the rate on the invoice to the new rate.

Manually adjust the rate for those transactions to the new rate.

Manually adjust the rate for those transactions to the new rate.

Combined/group rates can't be edited. You'll need to create a new group rate to use the new rate. Give the new group rate a different name to help you recognise it as the latest one.

For detailed information on how a tax rate change affects you, visit the website for your tax agency.

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