How do I get QB to use Custom Tax rate that I assigned to customers when invoices are created? Our business cannot use the "Based on Location" feature, causes problems.

Hello there, @MikeW3. Let me provide some insight into how QuickBooks Online (QBO) calculates tax rates.

Normally, QBO will automatically calculate taxes based on your customers' addresses for easy and accurate filings, so setting up a Custom tax Rate as the default is not possible. That said, what you normally do by manually updating the tax rates each time your invoices sync from the third-party app to QuickBooks works in this case.

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In case you'll need to check how much sales tax you owe, we can run the Sales Tax Liability report to help make sure that everything is accurate before you file your return to your tax agency.

Be sure to get back to me if you need more help in managing your sales taxes. It would be my pleasure to help. Have a good one!

Thanks for the reply. We never had this problem before QB created the "Based on Location" process, as my third-party app. would link the tax rate with the same rate in QB and everything was great, then they had to change it. We do not have addresses in QB as I only use QB to track income/expense, payroll, taxs, pay bills etc. Our third-party software (which is our production system) controls all charges and taxs based on local sales.

Because of this, we now have to do double the work.

Even if I set the customer default rate to the custom rate, it still defaults to the "Based on Location" rate on the imported invoice.

For sales tax purposes, the state that has the right to tax the sale is the state where delivery occurs. The seller should collect the tax for the state where the property is delivered to the customer.

HOW DO WE DO THIS without having to change the tax manually for every invoice for customers with a different sales tax rate than our business address?

I know this has been very challenging for you, jacque1.

I've seen here that you've posted twice in this forum with the same issue. I'd suggest following the response provided by my colleague through this link: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/re-my-invoices-are-defaulti....

If you have further questions or other QuickBooks concerns, please don't hesitate to reply in the comments below. We'll be around whenever you need help. Keep safe!