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Set up where you collect sales tax in QuickBooks Online

SOLVEDby QuickBooks710Updated 2 weeks ago

QuickBooks Online keeps track of your state's tax laws to accurately calculate sales tax and returns. All you need to do is tell QuickBooks where you collect sales tax. This happens when you first set up automated sales tax.

Note: This article is for automated sales tax. If you still use manual sales tax, check if you can switch to automated sales tax. If you don’t have the option to switch, it should be available to you at a later date.

Set up where you collect sales tax

  1. Go to Taxes, then Sales tax (Take me there).
  2. Select Use Automatic Sales Tax.
  3. You'll see your business name address here if you updated your business info in Settings ⚙. If not, enter your business address in the address fields. Then select Next.
  4. When asked if you need to collect sales tax outside of your state, select Yes or No.
    • If you selected yes, in the Select an agency field, enter another state where you collect sales tax, or use the ▼ dropdown to see all options for cities and states. Repeat for any city, county, or state that you need to collect sales for. 
  5. Select Next. Then close the window by selecting X or go to Create invoice
  6. When prompted, in the Filing frequency ▼ dropdown, select how often you file sales tax. 
  7. If you collect sales tax for more than one location, select Next agency and repeat selecting the filing frequency for each. 
  8. Select Save.

Add more tax agencies

Here's how to add more tax agencies and filing frequencies later:

  1. Go to Taxes, then Sales tax (Take me there). 
  2. Select Sales Tax Settings.
  3. Select Add agency
  4. Choose an agency and filing frequency. Then, filling out the start date and if you want to report using cash or accrual. 
  5. Select Save.

On your next invoice or sales receipt, QuickBooks will automatically use your business address as the sale location. If needed, you can always change the location on the transaction.

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