Default to Exclusive of Tax for Invoices and Inclusive for Bills and Expenses

Hi andie787,

Thank you for sharing your experience with us here in the QuickBooks Community. You've given us all something to be mindful of. QuickBooks Online offers different options for setting up your account. It's a streamlined version of QuickBooks, so busy people on the go can utilize it. I can explain what options it offers for default sales tax selections.

QuickBooks Online gives you the option to choose a default sales tax selection in your accounting preferences, which applies to all forms. There isn't an option to set defaults for specific form types. You can change the selection in the individual forms; in the dropdown next to Amounts are you can choose between Inclusive of tax, Exclusive of tax or Out of scope of tax. If you'd like to see other options for tax selection, I invite you to provide feedback.

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Could someone explain where the "Amounts are" field is? I want to bills and expenses to default to inclusive of tax, while invoices default to exclusive of tax. Thanks!

Hi there andie787,

In order to have your books well balanced, it's key that your transactions have the correct amount of tax added. QuickBooks Online is a great tool that can add up the taxes on sales and expenses in order to calculate the amount owed on your next return. I can provide some information about default taxes.

The default tax rate selection is a default selection to be applied to all transactions, whether they affect suppliers or customers. You can choose to select that all transactions are inclusive or exclusive of tax by default. There isn't a way to have certain types of transactions have one default setting whereas other transactions have the other default setting. I can see how having certain transactions be inclusive of tax by default and other transactions exclusive of tax would be a feature that would help you with managing your sales and expenses in QuickBooks Online. I recommend using the steps that my colleague Tammy put in her last response in order to enter feedback to request the feature. Comments made in the feedback section are taken into consideration by our development team when designing new features for QuickBooks Online. I'll pass along your feedback on my end as well.

If you have any other questions, feel free to reach out here.