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Edit sales tax rates

by Intuit•29• Updated 3 weeks ago

Update sales tax rates in QuickBooks Online to make sure you’re collecting the right amount.

A change to your sales tax rate applies to all future transactions, even ones dated before the change, but not past ones. Reports and records will show the data for both rates.

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What you’ll need

Before you try to change the sales tax rate on a recurring transaction that is automatically charged, create a new sales tax rate and edit the recurring transaction to use it. Then go to your sales tax settings and make the old sales tax rate inactive.

Otherwise, you’ll get the following error: 

"Error: To process this credit card transaction, please enter a credit card number. (code:"INDIRECTTAX-15811")"

Edit your sales tax rate

  1. Go to All apps A bunch of numbers and letters on a tile wall., select Sales Tax, then select Overview (Take me there).
  2. Select Manage sales tax.
  3. In the Tax agencies table, select the rate you want to change, and select Edit rate from the Make inactive ▼ dropdown.
    Note: You will not be able to edit any QuickBooks Online default tax rates.
  4. In the Edit sales tax rate window, change the rate. You can also change the name if you like.
  5. Select the Effective date, if required, this will be the date from which the rate change will take effect.
  6. Select Save.
  7. Select Make inactive or Make active beside the tax rate you want to make inactive or active.


Edit a tax agency name

You can edit a tax agency’s name through the Edit sales tax settings page using manual sales tax only. However, your sales forms will still show the old or initial name you’ve entered. If you would like a different name to show on your sales forms, you'll need to create a new tax agency.

To edit your tax agency's name, follow these steps:

  1. Go to All apps A bunch of numbers and letters on a tile wall., select Sales Tax, then select Overview (Take me there).
  2. Select Manage sales tax.
  3. Select Edit agency settings, then edit Tax agency name.
    Note: You can edit only custom tax agency created by you.
  4. Select Save.

Results

Your sales tax settings now reflect the updated percentages or names for all newly created transactions. Reports for the current period will display data for both the old and new rates if transactions exist for both.

Next steps

Review your recurring templates to ensure they are updated with the new sales tax rate.

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