How do I have the shipping taxable in my invoices? I only see how to make the products taxable?

Hello there, tropicalfunkstud.

In QuickBooks Online, after setting up the automated sales tax, taxes are automatically calculated based on the following:

• Your customer’s tax-exempt status
• Where you sell and where you ship
• What you sell

In some states, when you sell or ship to a different address, sellers are required to charge sales tax based on business location. To view and make changes on the tax information, you can click the See this math link under Sales tax.

Here's a sample screenshot of what it looks like:

I've also got some articles here that includes a lot of information about sales tax in QuickBooks Online: 

• Set up and use automated sales tax in QuickBooks Online
• Learn how QuickBooks Online calculates sales tax

Please leave a comment if you need more help with this. I'm just a few clicks away to help you some more. Stay safe!

As a florist in Washington State, I am exempt from charging different sales tax rates depending on where the product is being shipped to. Florists are allowed to charge sales tax based on where the product was produced -- so the shipping tax rate is the same regardless of destination. How do I change my settings so the sales tax is charged on Shipping? Currently in my system, sales tax is not being charge on the Shipping line.

Thanks for joining the thread and sharing details about your concern, @ABradfield.

Let me share some insights about adding shipping sales tax when creating invoices in QuickBooks Online (QBO).

Yes, you're correct. The Shipping field on an invoice won't be taxed since you'll have to manually add the exact amount to it. I've got a workaround you may perform to get around this.

You can add the shipping fee as a service item in the Product/Service section. Then, ensure to put a checkmark on the Tax column and choose a sales tax rate to make it taxable. Here's how:

1. Click the +New button, and then choose Invoice under the Customers section.
   
   
2. Select the Customer name in the drop-down ▼ and other info needed.
3. Create a line item in the Product/Service section (for your florist business).
4. Make a service item. Simply click the +Add new button, and then select Service. Enter "shipping" as the name, then Save and Close.
5. Make sure to enter an amount, check the Tax column, and then select a taxable rate.
6. Hit Save and Close once ready.
   
   
   
   

I'll be adding this handy resource as your guide on how to modify the sales tax in QBO: Edit Sales tax.

You may personalize your invoices and other sales forms to make it more appealing and professional looking. Check out this article for the detailed instructions: Customize invoices and sales forms.

Also, you can batch email or print your invoices and sales forms to make your task easy and efficient: How to send and print multiple invoices and other sales forms.

Then, once you receive payments from your customers, you'll want to enter them in QBO to organize your records: Record invoice payments.

Click the Reply button if you need more help about managing your sales tax or anything else related to QuickBooks. Take care and have a nice day.

We have the same issue as the OP but it doesn't seem like this was addressed in the reply/answer. We have to collect sales tax on the entire amount including shipping but can't find a way to set that. When we click the "see the math" it shows no match only the sales tax % for the jurisdiction. How can we specify sales tax on shipping?

Thanks for getting involved with this thread, mac2it.

Total sales tax rates are the sum of states rates, plus local rates, which may include city, county, and/or district rates. You don't have to keep track of each rate you need to charge, because QuickBooks does it all based on your location of sale or ship to address listed on the invoice or receipt.

When following ReyJohn_D's steps to create a service item for your shipping fee, I'd recommend making sure it's set up properly to be taxed. When creating the item, in step five, you can turn on your Tax option, then speify a rate.

If you've already created the item, you can find it on your Products and services screen, then edit it to make it taxable.

I've also included a detailed resource about working with sales taxes which may come in handy moving forward: Learn how QuickBooks calculates sales tax

Please feel welcome to send a reply if there's any additional questions. Have an awesome day!

Actually it seems like you have to make sure you choose "based on location" and not a custom rate if you have used those previoulsy and have since updated to qbo sales tax. If you do this then it will add the sales tax onto the shipping if you put shipping in the shipping field.