Sales tax

Hello, Barbara. When sales tax fails to calculate, it often stems from a configuration in the sales tax item settings. Reviewing and confirming these settings is the best way to identify and resolve the issue.

Before proceeding, please ensure that your QuickBooks Desktop is updated for optimal performance and that the Sales Tax feature is enabled.

Here are detailed steps for reviewing the Sales Tax Item:

1. Go to Lists on the top menu, then select Item List.
2. Look for the sales tax item and double-click it to open the Edit Item window.
3. Review or confirm the following details:
   • Type: The item type should be set to Sales Tax Item.
   • Tax Rate: Verify that the sales tax rate matches what you intend to use (e.g., 10%).
4. Double-check that the item is not set to Inactive, as this can prevent the sales tax from appearing on your transactions.
   
   

After that, please verify the Tax Code in the Sales Tax Code List to ensure it's correctly assigned to the sales tax item, as this determines whether the customer and related transactions are taxable or non-taxable.

I’ll keep this conversation available for any follow-up updates or questions.

Good day, Barbara.

I just wanted to quickly follow up to check if the steps I provided helped resolve the issue with your sales tax not calculating.

If you're still encountering the problem, please feel free to reply with what happened next, and we’ll be glad to assist further.

Good morning,

I followed the instructions and it still did not work. Under customer details, it shows the sales tax. Everything is active.  Not sure what to do next.

Thank you,

Barbara

Hi, Barbara. Thank you for getting back to us and following the instructions given by my colleague above.

Since you've confirmed that everything is set up correctly, the next step is to ensure there are no underlying issues with your company data files.

To do this, we recommend using the Verify and Rebuild Data tool in QuickBooks Desktop. This tool helps identify potential data issues and resolve them effectively.

Here's how:

1. Proceed to the Window tab, then Close All.
2. Click on File and select Utilities.
3. Choose Verify Data.
   • If an error message occurs, you can look it up on the QuickBooks Desktop support site to find steps on how to fix it.

After that, if you see that your data lost integrity, you’ll need to rebuild your company file to fix it. For detailed steps, refer to the Rebuild your company file data section in this article: Verify and rebuild data in QuickBooks Desktop.

However, if the issue persists even after verifying and rebuilding your data, we recommend contacting our Live Support team during their support hours. They can assist further in diagnosing why sales tax isn't calculating when creating invoices from estimates and provide appropriate resolution for it.

We're always here whenever you need further help. Please click the Reply button below, and we'll get back to you.