Thank you for posting here in the Community, @user113.
I can share some clarification about the taxes in QuickBooks Online.
The system creates a set of GST/VAT codes automatically based on the information we receive from your state agency. If there's a need for you to correct the tax amount, we recommend setting up a new rate instead of updating an existing GST code.
The previous rate may have been used on prior transactions, and adjusting it could affect your sales tax tracking. To add a new one, here's how:
I've also included some articles in case you need more ideas about GST in QuickBooks:
Let me know in the comment section below if you have any other questions. Have a great day ahead.
Thanks for the details, user113.
The tax rates are multiplied by line item. Let me use the screenshot you attached as an example. Let's say 7% of $187.50 is 13.13, and on the other line item you have the same amount and rate and it's equal to 13.13. Hence, the GST @7% on $375.00 is 26.26.
To help you look into the list of rates and manage them, you can check out your Sales tax centre. Just click the Taxes menu and click Edit GST. Then, Edit rates. You can click on a rate to see how they are applied to a sales or purchase transaction.
My colleague attached articles that will help you handle sales taxes. You can use them as a reference. For further help, you can check out our Community Help articles.
Always know that we're always available 24/7 so you can post and reply to use anytime. You take care and have a great day!
Hello there, user113.
QuickBooks Online (QBO) is set to calculate tax rates by multiplying the amount and the rate per each line item while making sure it qualifies the standard set by your state. At this time, there isn't a way we can modify the calculation settings.
If you need to know more about managing GST in QBO, you can visit the articles shared by my colleagues above.
Feel free to drop me a reply below if there's anything I can help you with. Wishing you all the best!
We calculate VAT based on the data entered in your account, 1231 4579 9803 299.
If you're seeing incorrect calculations, make sure to check your sales tax settings. If it's correct, I recommend contacting our QuickBooks support. They will be able to check your account and identify what caused the error.
Check put these articles for more information on how QuickBooks handles sales tax:
Let me know if you have other questions.