Learn about the Sales Tax Agent features

The Sales Tax Agent helps automate your sales tax workflow by tracking tax rules and identifying potential issues before you file. Instead of manually calculating sales tax, QuickBooks uses the agent to handle the calculations for you.

Automate tax rules

Tax rules can change based on what you sell and where you sell it. The Sales Tax Agent tracks these rules so you don’t have to. Here’s how to set up your sales tax so QuickBooks can determine which rules apply to your business.

Categorize products and services

The agent helps assign sales tax categories to your products and services to ensure you charge customers the correct amount.

1. Follow this link to complete the steps in product
2. Then, select Sales tax categories.
3. Select the Uncategorized tab to see recommendations from the Sales Tax A
4. gent.
5. Review your items to see the Suggested sales tax category.
   • If you agree, select Confirm suggestion.
   • You can also Deny the suggestion or select Select category to choose your own.
6. Once confirmed, the item moves to the Categorized tab.

If you are unsure which category to use, you can check what items need tax categories or ask your accountant for help.

Check for inconsistencies

The Sales Tax Agent can identify potential discrepancies in your data before you start your filing. It runs a pre-file check to look for inconsistencies by comparing your financial reports and cross-referencing local tax data.

If no issues are found, the Pre-file check complete message appears.

Note: This check isn’t run on the tax return itself. 

How to resolve flagged transactions

If the Sales Tax Agent finds any issues, it will flag the transactions and provide an explanation. It will also provide information on how to resolve them.

You have two options for each flagged transaction:

• View invoice or View & resolve: This allows you to manually resolve the issue.
• Ignore: Select this if you do not want to make a change.

Choosing either option helps to educate the Sales Tax Agent. After you have addressed the flagged transactions, the agent will run the check again before you file.