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Experienced Member

Quickbooks Online New Sales Tax feature

I am in Colorado and the sales taxes here are a nightmare. I was using Quickbooks Online's sales tax feature (the "old" version), but it became very difficult to keep track of all of the special taxing districts. 

 

I then contacted Avalara, as it would automatically know how to calculate the tax owed and apply the principles of Nexus. I currently am using Avalara, so I didn't give a thought to the blue statement seen on the estimates and invoices "Let QuickBooks calculate your sales tax".

 

Does anyone know if the New Sales Tax Feature in QBO is comparable to Avalara? I pay for Avalara, but it appears the QBO version is included in the subscription fee.

1 Comment
Moderator

Re: Quickbooks Online New Sales Tax feature

Hello,

 

The new automated sales tax feature is very accurate so long as you remember a couple things.

 

1.  It's best to use the FULL zip+4 zip code whenever possible.  This will help QBO get exact location for local city, county, etc. taxes.

 

2.  When you setup the sales tax in QBO, click the drop down menu and scroll down to CO.  You'll see there are lots of cities there.  Select the city, NOT the state of CO.  This will also help to make sure that it calculates local taxes correctly. (picture below)