QBO has a flag apply tax after discount

It's nice to see you here in the Community, copies of client 1099. Allow me to provide information about how sales tax is calculated in QuickBooks.

The option to toggle whether sales tax should be applied before or after discounts is unavailable in QuickBooks Online. This is because QuickBooks Online automatically calculates sales tax by default after a taxable discount. You can click the See the math button on the invoice page to ensure that the sales tax is calculated correctly. You'll be provided a detailed breakdown of the sales tax.

For more information on managing your sales tax in QuickBooks, you can check out this article: Set up your sales tax.

You may also want to override sales tax calculations in QuickBooks. Here's a guide on how to do it: Override sales tax on transactions.

Come back to this post if you have any other concerns about sales tax in QuickBooks, copies of client 1099. The Community will always be here for you.

I beg to differ. QBO defaults to calculating discount BEFORE the discount, not after. Every time there is a discount involved, I have to go in and manually change this,

Chiming in to say that this answer is incorrect. Quickbooks Online is defaulting to calculating discounts after Sales Tax.

Per my understanding, this is incorrect from a tax law standpoint in most situations. Considering this has been going on since at least June of last year, there are likely tens if not hundreds of thousands of invoices that have been issued with incorrect sales tax, unbeknownst to the companies issuing them. Generally companies trust their accounting software to get basic sales tax correct.

Can this issue be escalated in any way?

Thanks for joining the Community and getting involved with this thread, Fiddlehead Bookkeep.

If you feel your automated sales tax feature is calculating sales taxes incorrectly, I'd recommend getting in touch with our Customer Care team. They'll be able to pull up the account in a secure environment, conduct further research, and create an investigation ticket if necessary.

They can be reached while you're signed in.

Here's how:

1. Use the Help (?) icon.
2. Click Contact Us.
3. Enter a description of your situation in the What can we help you with? field, then hit Let's talk.
4. Select Start messaging or Get a call.
   
   

Be sure to review their support hours so you'll know when agents are available.

If there's any additional questions, I'm just a post away. Have a great Thursday!