Canada-based company selling in the USA. Sales tax.

Hi marketa1,

I applaud your entrepreneurial spirit. Good for you! QuickBooks Online has a hearty Sales Tax module and gives you options for creating your agencies and custom taxes. I'm going to ensure you have everything you need to move forward.

You can review these articles. They contain the details for setting up custom taxes:

• Set up where you collect sales tax in QuickBooks Online
• How to set up a new sales tax code
• Manage sales tax payments in QuickBooks Online

Once you've read through them, let me know if you have any questions. I'm here to help. Have a terrific evening!

Do you have physical or economic "Sales Tax Nexus" in the US?  That will determine the complexity of the answer. 

Hi there. Glad to have you reach out here. Are you using the US version of QuickBooks or the Canadian version? 

Hi James, 

we're using the Canadian version.

Hi Lord Sloth,

it's economic nexus in the US.

.Thanks for that Marketa1. 

Just to clarify a bit about the steps my colleague mentioned earlier. Depending on if you're a Canadian business selling to Canada and America or if you strictly deal with American companies there are different ways to go about this. If you doing business in both countries you can make new sales tax codes for the USA using the steps provided however I recommend reaching out to an accountant. Not only can an accountant help you with making sure it's tracked correctly they can also walk you through the best way to make these sales tax entries and which countries you need to set up. If you don't have an accountant no worries, we can help with that. You can go to My Accountant>Find a pro to help to find one in your area that can help.

If you have any questions let us know and we'd be happy to help!

Hi,

I have a similar issue, except my sales tax for the US are created already. Our customers in the US are already created in USD currency. We can invoice them without any problem. The issue we encounter is when recording the sales tax payment. it seems the payment can only be done from a CAD account even though the sales tax amount I have is in USD. How can I solve this?

Hi there nicholas3,

Thanks for reaching out about your tax payments. QuickBooks Online is a tool that can help you with your tax tracking so you can know the amounts for each filing. I can give you some information about that.

To know about how you should be entering this payment, I recommend reaching out to the QuickBooks Online support team outside of the Community. They;ll be able to assist in making sure it's all entered correctly. You can reach them using these steps:

Schedule a Callback or start a Chat: click (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat.
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If you have any further questions, please feel free to ask them here.