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johns64
Level 2

All my July invoices are calculating the sales tax rate "based on location" with the incorrect rate, it's a previous rate and not the current one. How can I fix this?

The "based on location" was working fine until I started entering July invoices. It is reverting to a previous tax rate from 2019. I can't find out where to change or fix this.
1 Comment 1
katherinejoyceO
QuickBooks Team

All my July invoices are calculating the sales tax rate "based on location" with the incorrect rate, it's a previous rate and not the current one. How can I fix this?

Thanks for visiting the Community today, @johns64

 

The Automated Sales Tax system uses the Based on location tax rate on the address provided on an invoice. Otherwise, it'll use your company address' location to calculate the rate. 

 

For now, you can manually click the drop-down list and select the custom rate when creating your sales transactions. See screenshot below: 

 

salestax.JPG

 

You can also select +Add new from the drop-down list to customize or change the sales tax rate to manually calculate taxes on invoices 

 

Let me also share these additional guides when filing and paying your sales taxes in QBO:

 

 

Feel free to come by again if you need additional help. We're always here to guide. Stay safe. 

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