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Intuit

Edit sales tax rate in QuickBooks Online

Did you get a notice that your sales tax rate is changing and you are using custom tax rates in QuickBooks Online? Here's how to update them:

To edit sales tax rates:

  1. From the left menu, select Taxes. If you have multiple tax agencies, in the top-left ensure that the correct tax agency is selected.
  2. In the top right-hand corner next to Add tax, select the Edit drop-down then Edit rates.
  3. In the tax rate table, choose the rate you want to change and select Edit.
  4. In the Edit tax rate window, change the rate. You can also change the name if you like.
  5. Set the Effective Date, if required, this will be the date from which the rate change will take effect.
  6. Choose Save.

What happens when you edit a sales tax rate

  • When you edit a rate, you must set an effective date i.e date from which the new rate must be effective
  • The new rate will be available for new transactions entered after the Effective date
  • If you create a new transaction dated before the set Effective date, the transaction uses the old rate
  • If you don't set an Effective date while editing a rate the earlier rate can no longer be used even for past dated transactions
  • Existing transactions that used the earlier rate remain unchanged unless you edit the transaction and specifically select a different sales tax rate
  • For recurring templates that use the changed component, new transactions created with the template use the new rate. Existing transactions created with the template and the earlier rate remain unchanged
  • Reports show the data for both rates (before and after) if there are transactions for both the rates in a particular period

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