Quickbooks Online New Sales Tax feature

reflectionsigns · ‎June 06, 2019

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.

reflectionsigns · ‎December 02, 2019

Thank you!

One more question, when I go through the setup process, does it allow the ability to select multiple cities? I ship/deliver products to about 50 cities in Colorado.

View solution in original post

reflectionsigns · ‎December 02, 2019

Thank you, MarshallA.

~ Stacey

View solution in original post

MarshallA · ‎June 06, 2019

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)

reflectionsigns · ‎December 02, 2019

Thank you!

One more question, when I go through the setup process, does it allow the ability to select multiple cities? I ship/deliver products to about 50 cities in Colorado.

reflectionsigns · ‎December 02, 2019

Thank you, MarshallA.

~ Stacey

ShallyMarR · ‎December 02, 2019

Good day, @reflectionsigns.

Thanks for posting int the Community.

Yes, you can select multiple cities to calculate your business sales tax in different locations in QuickBooks Online. Go to your invoices and fill in the information of Shipping From and Shipping To or Location of Sale field.

Here's how:

1. Go to Sales tab, then click Invoices page.
2. Select New Invoice.
3. Choose Add new or customer.
4. Fill in the information of Shipping From and Shipping To.
5. Enter your product under Product/Service column.
6. Enter your Amount.
7. Hit Save.

To learn more about different set up on sales tax in QuickBooks Online, check out this article for future reference: Set up and use automated sales tax.

If you need further assistance with the workaround, just let me know. I'm here whenever you need more help.

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Quickbooks Online New Sales Tax feature