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eisenarmsllc
Level 1

Since the "Location" addition, my non taxed and out of state sales are not shown on my Sales Tax Liability Report - which miss states my true gross sales-how to fix this?

There is no TAX AGENCY for a non taxed sale - so my gross amount and non taxable amount on the Sales Tax Liability Report is wrong. How do I enter an invoice for a non taxed item and it show up on this report?
2 Comments
CharleneMae_F
QuickBooks Team

Since the "Location" addition, my non taxed and out of state sales are not shown on my Sales Tax Liability Report - which miss states my true gross sales-how to fix this?

I'll help you view your non-taxable transactions on a report, eisenarmsllc.

 

You can only see the transactions with taxes in the Sales Tax Liability report. To view the non-taxable sales, let's run and customize the Taxable Sales Detail report.

 

Here's how:

 

  1. Go to the Reports menu.
  2. In the search field, key in and select Taxable Sales Detail.
  3. Select Customize.
  4. Choose the date range in the General ▼ drop-down menu.
  5. On the Filter ▼ drop-down list, select these checkboxes:
    • Customer Taxable, to list all customers with non-taxable sales.
    • Distribution Account, then All Income/Expense Accounts from the drop-down list, to hide the A/R Source line on the report.
    • Product/Service Taxable, then Non-Taxable from the drop-down menu, to show the report as Taxable Sales Detail when you run the Non-Taxable Sales Report.
  6. Select Run report.

 

For more details about the process, you can check out this article:  Create a Non-Taxable Sales Report in QuickBooks Online.

 

In case you still need to enter non-taxed items in QuickBooks, I'll guide show you how:

 

  1. Go to Products and Services, select the item and click on the Edit link. 
  2. Uncheck the Is taxable box and click on Save and close
  3. Please note that if you've been using this item, the historical transactions will also get updated. 

1.PNG

Also, you need to check the taxable status of your customer. If a customer is listed as tax-exempt and has a valid address, the tax-exempt status won't apply to any invoices or sales receipts created for them.

  1. Select Sales.
  2. Click the Customers.
  3. Choose the customer you want to be tax-exempt.
  4. Click on Customer Details, then select Edit.
  5. Select the Tax info button, then put a checkmark beside This customer is tax-exempt, and select a Reason for exemption.
    customer is tax exempt1.PNG
  6. Click the Save button.

Once done, you can now create invoices with non-taxable sales. If you've already created invoices, you need to open each of them and re-select the item. Doing this will also remove the sales tax amount.

 

Additionally, I'm adding these articles as your guide while managing sales taxes in QuickBooks Online:

 

 

Please fill me in if you have additional queries about running sales tax reports and making non-taxable invoices. It's always my pleasure to help. Keep safe.

 

eisenarmsllc
Level 1

Since the "Location" addition, my non taxed and out of state sales are not shown on my Sales Tax Liability Report - which miss states my true gross sales-how to fix this?

Customers are not all taxable or non-taxable - depends on if I'm doing a service or selling an item inside or outside of my state. It's not all one way or the other. Same thing with my inventory - sell it out of my state = no sales taxes - and that requires me to not use your Sales Tax Liability Report because it's not show all my sales. Funny how your technical support called me back telling my ONLINE software isn't updating and how I need to spend more money and get more services. I'll be shopping around.

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