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Level 1

I used automated tax set up, and did not correct the rate. I need to change it from 6.75% to 8.25% and can't figure out how due to the automated process

 
7 Comments
QuickBooks Team

Re: I used automated tax set up, and did not correct the rate. I need to change it from 6.75% to ...

Hello tim20,

 

You'll have to override the amount to correct it.

 

Here's how:

  1. Click Taxes, then click Sales Tax.
  2. Click the View Return button next to the tax you need to adjust. A Return summary screen will open.
  3. Click Add an adjustment. Then, click the reason for adjustment.
  4. Select the adjustment account. (Note: The list of account changes based on the reason selected.)
  5. Add the amount of the adjustment.
  6. Click Add at the bottom.

After that, make sure to verify if you have the correct address information. QuickBooks calculate your sales tax base on the following:

  • The state where you have nexus and are registered to collect sales tax.
  • The physical address of your business.
  • The physical address on the sales receipt or invoice.
  • The product mapping you have associated with the products or services you are selling.
  • The exemption status of your customer.

Please refer to this helpful article about: Set up and use Automated Sales Tax.

 

Don't hesitate to click the Reply button if you have other questions.

RCT
Level 1

Re: I used automated tax set up, and did not correct the rate. I need to change it from 6.75% to ...

Quickbooks is trying to make us charge 8.25% tax, using the automated system. We are not in town, so our state sales tax comes out to 6.75%. (6.25% for the state, and .5% for our hospital district.)

 

I've called Quickbooks, but they just say change your address. Our address IS correct. It is a county road. 

 

So every invoice I make out, I have to override the tax amount. 

Moderator

Re: I used automated tax set up, and did not correct the rate. I need to change it from 6.75% to ...

Thanks for joining this conversation, @RCT.

 

First of all, I appreciate the details you've provided and for contacting our Phone Support team to get this working.

 

As previously mentioned, the new automated system looks at a variety of information to calculate sales tax. Since your address is already correct, you can adjust the sales tax rate directly instead of overriding the amount on every invoice.

 

You can refer to the detailed steps provided by my colleague @ShiellaGraceAabove or check out this article and click the Sales tax adjustment drop-down for more information: Set up and use Automated Sales Tax.

 

That should point you in the right direction. Please let me know how it goes by leaving a comment below. I'll be here if you need further assistance. Have a great day.

RCT
Level 1

Re: I used automated tax set up, and did not correct the rate. I need to change it from 6.75% to ...

Thanks, that lets me adjust the final amount i pay to the Texas Comptroller...but I will still have to override the tax on every single invoice I print out so I charge the customer right...kinda a lot of hassle...

QuickBooks Team

Re: I used automated tax set up, and did not correct the rate. I need to change it from 6.75% to ...

Thanks for getting back to this thread, @RCT.

 

I appreciate you for following the resolution provided by my colleagues. It may take some effort to override the invoices tax rate, but rest assured this will surely resolve your concern today. Please know that you're always welcome to post if you have any other concerns. The Community team will always here to help. 

 

Wishing you and your business continued success. 

Level 1

Re: I used automated tax set up, and did not correct the rate. I need to change it from 6.75% to ...

I'm updated my sales tax center and now my sales tax rate has changed from 8.25% to 6.25%. How to I change the rate back to 8.25% when invoicing taxable customers?

I've went to the sales tax center and the settings. It only lists Taxable Standard rate which is 6.25% and non taxable. I need to figure this out and I need to start billing for this month.

 

Moderator

Re: I used automated tax set up, and did not correct the rate. I need to change it from 6.75% to ...

Hi lhinojosa79,

 

The option to retain the rate to 8.25 isn’t an option. it will depend on what’s mandated by the state.


Aside from this, the tax rate will calculate based on a variety of information.


Here’s an article to know what are those information: Set up and use automated sales tax. Then, click the Calculate your sales tax drop-down.

 

Reach out to me if you still need my help. Thank you.

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