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Cozy2
Level 1

QBO rolled out their auto tax and now I do not have custom rate functionality. Anyone else experience this?

I own a lodging property and need to add the lodging tax into the sales tax settings. However I do not have the Custom Rates option. Per QBO, under their article about the auto tax upgrade, we still can track sales tax rates manually. Per QBO "After you switch to the new sales tax system, you have the option to use custom rates on invoices and receipts. You can use custom rates to manually track special taxes like meals or excise tax. Or, use custom rates if you feel more confident tracking sales tax manually." However, I do not have that option under the sales tax settings.
9 Comments
MorganB
Content Leader

QBO rolled out their auto tax and now I do not have custom rate functionality. Anyone else experience this?

Good afternoon, Cozy2.

 

Thanks for reaching out for support here in the Community. I want to make sure you're able to use custom sales tax rates in your QuickBooks Online account. 

 

These can be set up in the sales tax settings area of your account. Here's how to get there:

  1. Go to Taxes, then Sales tax.
  2. Select Sales tax settings.
  3. In the Custom rates section, select Add rate.
  4. Select Single or Combined
  5. Enter the name of the rate.
  6. Select the Agency you file payments to
  7. Enter the Rate, then Save.

The following linked article provides even more info about using custom rates to manually calculate taxes on invoices or receipts.

 

If you're still unable to see this custom option in your tax settings, I recommend clearing the browser cache as an initial troubleshooting step. The cache is in place to make loading web pages quicker and easier but can cause an adverse effect if it becomes too full. Clearing it helps to resolve viewing and performance errors within the system. This post offers the steps to get this done depending on which browser you're using: Clear cache and cookies to fix issues when using QuickBooks Online

 

With these details you'll have the custom sales tax rate set up and ready to go in no time. Feel free to reach back out if you have any other questions. I'll be here to help.

Cozy2
Level 1

QBO rolled out their auto tax and now I do not have custom rate functionality. Anyone else experience this?

I cleared the cache and logged off and on QBO. To no avail, I can still not see custom rates in the sales tax settings. This seems to be a bug. I did log into Safari. I am using Chrome. Here is a print screen of what I am seeing.

 

This is quite frustrating. I have spent over eight hours on this issue already with QBO cust service.

 

Thank you,

 

Nora

Cozy2
Level 1

QBO rolled out their auto tax and now I do not have custom rate functionality. Anyone else experience this?

This solution did not resolve the issue. This seems to be a bug. Please advise, as I have called the QBO help line repeatedly with no resolution. I have spent over 8 hours with your support. I have an open case, [removed]. I need to be able to collect the 4% sales tax in the state of WY. That works fine. However, as a lodging property, I need to collect an additional 7% tax. Per your instructions, I should have a custom rate functionality to set up that custom sales tax in the sales tax settings screen. However, all I have is blank under the tax entity.

RenjolynC
QuickBooks Team

QBO rolled out their auto tax and now I do not have custom rate functionality. Anyone else experience this?

Thanks for adding all the details about your situation, Cozy2.

 

To verify, are you subscribed to QuickBooks Online Simple Start? If so, this version doesn't have the Custom rates option in the Sales Tax settings.

 

Here's a sample screenshot to see the sales tax page comparison:

 

 

You'll want to upgrade your plan to Essentials or Plus by following these steps:

 

  1. Sign in to QuickBooks Online as a primary or company admin.
  2. Go to the Gear Account and settings.
  3. On the left panel, click the Billing & Subscription tab.
  4. Make sure your payment info is up-to-date.
  5. In the QuickBooks Online section, select Upgrade your plan.
  6. Review the available plans and then select Choose plan.
  7. Follow the on-screen steps to upgrade your plan.

Once done, you can go to Taxes > Sales Tax > Sales Tax Settings and start adding the Custom rates.

 

I've got these articles that you can use as a guide:

 

Please don't hesitate to reach out to me again if you have any additional questions or other concerns. I'll be around to help you out. Have a good day ahead.

Cozy2
Level 1

QBO rolled out their auto tax and now I do not have custom rate functionality. Anyone else experience this?

Thank you for the explanation. I’ve spent Eight hours with customer service who repeatedly told me this was not an upgrade situation and that my simple start should have accessibility to set up custom rates. I find it ridiculous that something as basic as a business needing to put in manual rates is not a basic service, I used QuickBooks desktop for decades and this is a standard option as each business may have municipal, county, or state taxes they have to account for. QuickBooks has never claimed to be  a tax expert and should either allow us to override the automation of tax rates or give the custom rates as a manual option to ALL users.  Your new automated tax system in QBO must allow all users to be able to manually adjust rates. Sales tax is a very fluid and ever-changing target. There is no way QuickBooks can keep up on all the changes and so business owners need to have the ability to override and change tax rates either by the entity or as a custom rate option. 

please advise. 

RenjolynC
QuickBooks Team

QBO rolled out their auto tax and now I do not have custom rate functionality. Anyone else experience this?

I appreciate your time getting back here, Cozy2.

 

Spending a lot of time to get this sorted is not the experience we want to give our customers. I'll be sure to pass on what you have told me here to our Product Development Team. 

 

For now, you can follow the steps I've shared above on how you can obtain the Custom rates option. 

 

If there's anything else you need, you can always reach out to me. I'd be glad to give details and steps to help you out. Keep safe!

Cozy2
Level 1

QBO rolled out their auto tax and now I do not have custom rate functionality. Anyone else experience this?

Flexibility in setting up

sales tax is basic for any business that sells anything. Your video is for all subscription levels and I should not be forced to upgrade to be able to correctly calculate sales tax. Please look into this further.  thank you. 

Cozy2
Level 1

QBO rolled out their auto tax and now I do not have custom rate functionality. Anyone else experience this?

Flexibility in setting up sales tax is basic for any business that sells anything. Your video is for all subscription levels and I should not be forced to upgrade to be able to correctly calculate sales tax. Please look into this further.  thank you. 

Cozy2
Level 1

QBO rolled out their auto tax and now I do not have custom rate functionality. Anyone else experience this?

I should not have to upgrade to be able to set up manual sales tax rates. Either take away the auto sales tax function from your lowest subscription level or give your lowest subscription level the ability to access custom sales tax rates. 

QBO can not keep up with all state, county and municipal tax rates, so you need to offer custom manual rates for all subscription levels.

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