Can we correct the Tax Rate % that populates on invoices? Currently it is showing a % of the entire inv. instead of just the rate applied to taxable items.

Thank you for taking the time to explain your sales tax concern in detail, Info. I’ll provide a comprehensive overview of how this functions in QuickBooks and outline the steps you can follow to modify the tax rates.

In QB, you have the option to modify the tax rate that appears on your invoices. However, if you set up QB to automatically calculate the tax for you, it takes into account various factors to ensure accuracy. These aspects include your customer's tax-exempt status, the nature of your products or services, and the location of your sales and shipments. Even with this automated approach, you still have the flexibility to adjust the calculated tax amount.

Additionally, the total sales tax rate on the invoice is the sum of the state and local rates. QuickBooks does all that based on the location of the sale or the ship-to address you add in an invoice or receipt. 

For further details, check out this article: Learn how QuickBooks Online calculates sales tax.

To change the rate that QB automatically calculates, please refer to the steps below:

1. Open your invoice.
2. In the Sales tax section, click on See the math.
   
   
   
   
3. Scroll down and tap Override this amount.
   
   
   
   
4. Enter the sales tax manually.
   
   
   
   
5. Hit Apply override.
   
   

The measures outlined above should provide the necessary guidance to effectively adjust the sales tax rate to meet your specific requirements. You should be able to make the appropriate changes and ensure that the rate on your invoices is accurate and up-to-date. If you have any additional questions or encounter difficulties while implementing the changes, comment below.

Thank you. When I click see math, it does show me the correct rate which for me is 7.375% for county and state. The amount charged is also correct. However,  the rate on the invoices does not match that rate. It appears to be giving the % of the invoice. I also entered a custom rate of 7.375% and it still shows up as different rates on the invoice beacuse it is showing the % that would apply if all items on an invoice were taxable which they aren't. 

Thank you when I go to see math the amount is correct. Which is 7.375% for county and state. However the amount that populates on invoice doesn't match was is under see math. It appears to be giving the % that would apply if all items on an invoice were taxable, which is rare for us. I attached an example that will show you how the rate appears on an invoice. Like I said, when I go to see math, it is calculating correctly applying tax to only the parts and materials at the rate of 7.375%.

Thank you for providing details about the discrepancy you are experiencing with the tax rate calculation on your invoices in QuickBooks. I'll share insights on how the program calculate your sales taxes. 

The total rate displayed on the invoice represents the combined rate for the agencies' collected sales tax. On the other hand, the total sales tax amount reflects the calculation for each line item in your invoice, applying the appropriate tax rate to taxable items such as parts and materials. 

See screenshot below for your reference.

These articles are helpful resources on tracking and calculating sales tax:

• Add sales tax categories to your products and services
• Use automated sales tax on an invoice or sales receipt

 I'm only a post away if you need additional guidance with handling your sales taxes in QBO. I'll be right here to help you again. Have a great day!