Discounts and Sales Tax

I'm here to help you apply the correct sales tax to your invoice amount and discount, TaylorHeating.

In QuickBooks Online (QBO), we can adjust the settings to ensure the sales tax is calculated on the taxable total after discounts have been applied. Here's how you can do it:

1. Open the invoice. 
2. Select Manage.
3. Click the Payment options drop-down arrow.
4. Scroll down to the Discount section.
5. Uncheck the box beside Apply discounts after sales tax.
   

Once done, review if the sales tax is accurate.

Additionally, I've added these resources that can help you manage your sales taxes and record tax payments:

• Set up your sales tax in QuickBooks Online
• Manage sales tax payments in QuickBooks Online

Keep us updated if you have additional concerns or questions about managing your sales transactions. This way, we'll be able to provide the help you need.

Is there a way to make this a default setting?

We hear your suggestions and recognize your need for this feature on making the sales tax to be calculated on the taxable total less discount as default in your settings in your QuickBooks Online (QBO) account, TaylorHeating.

I encourage sending your requests directly to our Product Development Team. They will carefully evaluate this prospect to ensure it meets your business needs effectively. To send a feature recommendation, you can follow the steps below.

1. Click the Gear icon at the top, then tap Feedback.
2. Indicate your comments or suggestions.
3. Then select Next to submit your Feedback.

You can trace requests for features through the QuickBooks Online Feature Requests website.

As this feature is currently unavailable in QBO, I recommend following the steps suggested by my colleague above, wherein you'll have to manually unmark the Apply discounts after sales tax option to calculate the sales tax on the taxable total minus any discounts. This should help you get the desired result.

Let me know in the comments below if there is anything else I can help you with applying discounts and sales tax in the invoices in QBO. I'll be sure to assist you at any time, TaylorHeating. Have a great day ahead!