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jenuneekor
Level 4

Sales Tax Setup in Quickbooks Online

Good morning,

 

We are using Quickbooks Online. We recently hit the nexus threshold in Wisconsin, and set up sales tax collection in QBO on June 25th. We are a remote seller. QB is calculating state and county tax for Wisconsin, plus tax on shipping. But the state of Wisconsin does not require us to pay county sales tax or tax on shipping. Could you please provide your thoughts on the following questions:

 

1) Is there a way to modify what QB is calculating for sales tax for us in WI? I can't figure it out!

2) I tried to create a custom tax rate for Wisconsin. It's not working properly, so I want to delete it. But there is no option to delete a custom tax rate after you've set it up that I can find! Could you please tell me how to delete it so it doesn't mess up our tax collection for WI?

 

Thank you in advance!

Jen

 

Solved
Best answer July 31, 2020

Best Answers
Joesem M
QuickBooks Team

Sales Tax Setup in Quickbooks Online

I appreciate you for providing detailed information on what you see on your end, @jenuneekor

 

It looks like you're using the automatic sales tax in QuickBooks Online and the steps shared by my colleague are for the Manual Sales Tax.  

 

In QBO, we use Automated Sales Tax. This means, the rate is automatic and it'll depend on your customer's address/zip code. Editing it is unavailable, however, you can override the amount.

 

Here's how:

 

  1. Go to the +New button.
  2. Select either Invoice or Sales Receipt.
  3. Enter all the needed information, then check the total sales tax at the bottom.
  4. Select See the math or the total tax amount to open the Let’s calculate your tax rate window where QuickBooks gives you the detailed breakdown of the sales tax.
  5. Click the Override this amount hyperlink.
  6. Enter the Rate, then the Reason.
  7. Select Confirm, then Close.

To learn how QuickBooks automatically calculates the total tax rate, you can refer to this article for the detailed information: Set up and use automated sales tax in QuickBooks Online. It also contains instructions on how you can file your sales tax return with QBO.

 

I'm adding these articles for reference. It contains a video tutorial, links on how to track sales automatically in QuickBooks:

 

 

Hit the Reply button below if you need anything else. I’ll be more than happy to help. Thanks for dropping by and take care! 

 

View solution in original post

10 Comments
ZackE
QuickBooks Team

Sales Tax Setup in Quickbooks Online

Thanks for reaching out to the Community about this, jenuneekor.
 

In QuickBooks Online, sales tax rates can be modified as necessary to keep everything accurate. I'll walk you through the process:
1. In your left navigation bar, go to Taxes, then Sales Tax.
2. Underneath Related Tasks, click Add/edit tax rates and agencies.
3. Use the Sales Tax Rates and Agencies table to choose which one you want to change.
4. Hit Edit.
5. Our Edit Sales Tax Component window will display. Here, you can edit the rate and component name being used.
6. Once you've finished making your changes, select Save.
 

Now your sales taxes will be calculated according to how you configured the new preferences.
 

There's a few things you'll want to be aware of when making these kinds of updates:

  • After editing a rate, the previous one can no longer be used.
  • The new rate is only available moving forward, on future transactions.
  • If a transaction is created using past dates, it will use your new rate.
  • Reports will show data for both rates (before and after) if there's transactions for them within a given period.
  • Existing transactions that used the previous rate will remain unchanged unless you alter the transaction record and specifically input a different sales tax amount.
  • Your new rate will be used for records created from recurring templates.


In regard to your second question, here's how rates you've created can be deleted:
1. In the left navigation bar, go to Taxes, then Add/edit tax rates and agencies.
2. Pick the one you'd like to remove and select Deactivate.
3. Press Continue to remove the code. Tax codes can be reactivated at any time by clearing your Make Inactive checkbox.
 

I've included a few resources about sales taxes which will come in handy moving forward:

 

Feel more than welcome to respond in this thread if you have any other questions. I'll be here to assist. Have a fantastic day!

jenuneekor
Level 4

Sales Tax Setup in Quickbooks Online

Hi ZackE! Thank you for responding so quickly. Here's what I'm stuck on: when I click on "taxes" in the left hand navigation, it takes me to a page where there is not a "sales tax" option. My options are History, Sales Tax Settings, and Reports at the top. The shortcuts on the right are "tell us where you collect tax," "update products and services," "double-check client addresses," "run sales tax reports," and "look at past returns." I can't find where you're referencing, could you direct me where to find that? One additional note: when I hover over "taxes" in the left nav, it doesn't pop up anything.

 

Thank you!

Jen

 

Joesem M
QuickBooks Team

Sales Tax Setup in Quickbooks Online

I appreciate you for providing detailed information on what you see on your end, @jenuneekor

 

It looks like you're using the automatic sales tax in QuickBooks Online and the steps shared by my colleague are for the Manual Sales Tax.  

 

In QBO, we use Automated Sales Tax. This means, the rate is automatic and it'll depend on your customer's address/zip code. Editing it is unavailable, however, you can override the amount.

 

Here's how:

 

  1. Go to the +New button.
  2. Select either Invoice or Sales Receipt.
  3. Enter all the needed information, then check the total sales tax at the bottom.
  4. Select See the math or the total tax amount to open the Let’s calculate your tax rate window where QuickBooks gives you the detailed breakdown of the sales tax.
  5. Click the Override this amount hyperlink.
  6. Enter the Rate, then the Reason.
  7. Select Confirm, then Close.

To learn how QuickBooks automatically calculates the total tax rate, you can refer to this article for the detailed information: Set up and use automated sales tax in QuickBooks Online. It also contains instructions on how you can file your sales tax return with QBO.

 

I'm adding these articles for reference. It contains a video tutorial, links on how to track sales automatically in QuickBooks:

 

 

Hit the Reply button below if you need anything else. I’ll be more than happy to help. Thanks for dropping by and take care! 

 

View solution in original post

Fiat Lux - ASIA
Level 15

Sales Tax Setup in Quickbooks Online

@jenuneekor 

As another option, explore this AST Filing and Reporting app to integrate with your QBO.

https:// taxjar.grsm.io/mytax

 

SuperStar777
Level 5

Sales Tax Setup in Quickbooks Online

Hi,

I notice that the format of sales tax is getting changed from 5% to 0.05 on the invoice

see the screen shot please.

how to change it to 5% instead of just 0.05 ?

JessT
QuickBooks Team

Sales Tax Setup in Quickbooks Online

Hi SuperStar777,

 

Thank you for joining the thread. I also appreciate your screenshot.

 

At the moment, we haven't received any announced changes on the format of the VAT rate on the invoice from our engineers. For this reason, we'll do the basic browser troubleshooting steps.

 

To start, you'll want to sign in to QuickBooks using a private browser. This step disables its extensions and stops the cache from saving your browsing history.

  • Google Chrome: Ctrl + Shift + N
  • MS Edge and Firefox: Ctrl + Shift + P
  • Safari: Command + Shift + N

If your invoice shows the rate in a percentage format, you can go back to your regular browser and clear its cache. If not, please try other browsers to see if we get the same thing.

 

If nothing works, please contact our Email team to check this further. They can start a screen-sharing session to gather more details about this behavior.

  1. Click on Help and type something like VAT format on invoice changed from percentage to decimal.
  2. When you get related topics, type in need a human.
  3. Choose any from another set of suggested topics, and click on I still need a human.
  4. Choose Contact Support Team.
  5. Select Email or Chat.

Please let me know if you have other questions in mind. You can also search for other topics in the Help section to see find references for QBO in the future.

SuperStar777
Level 5

Sales Tax Setup in Quickbooks Online

hi,

the said trick did not fix the issue. i will proceed with help option

SuperStar777
Level 5

Sales Tax Setup in Quickbooks Online

in the help section, the Messaging and callback option is disabled.

AileneA
QuickBooks Team

Sales Tax Setup in Quickbooks Online

Hello, SuperStar777. 

 

Thank you for reaching back to us. We need to make sure that you contact our customer support team on specific office hours availability to ensure we can address your concern on time. To know more about the available time of our customer support team, you can check out this article:  Support hours and types.

 

However, you have the option to Get a scheduled call. Just click the Callback, and one of our representatives will call you back on the set schedule you've initiated.  

 

 

 

 

You can also read the topics from our help articles as your guides while working with QuickBooks in the future. 

 

If you have any other questions or concerns, simply reply below. I'll be here to help you. Take care and be safe.

PlayerOne
Level 1

Sales Tax Setup in Quickbooks Online

This is no longer accurate.  The options and steps delineated are no longer available.

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