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email@redblockin
Level 1

How is Tax Name determined in my sales receipts?

Most of my sales receipts in QBO have the Tax Name "Washington, Bellingham City" yet none of these sales were in WA or in Bellingham City (neither the Shipping or Billing address). All of my actual WA based sales were taxed appropriately in QBO and they also appear in my QBO sales tax report. The annoying thing is that all the other sales receipts that have the Tax Name "Washington, Bellingham City" also appear in my sales tax report as "Non-taxable sales". My office happens to be in Bellingham City (not a coincidence I'm guessing), but I have not sold to any customers in Bellingham City for the entire year. I should also mention that my "taxable sales" report in QBO is correct because QBO is correctly calculating sales tax for every one of my actual WA sales. So... to summarize my problem... Since most of my sales receipts have the incorrect "Tax Name" of "Washington, Bellingham City, my Gross Sales for WA State are completely wrong in the sales tax report. Has anybody else run into this "Tax Name" issue? How do I fix this?
4 Comments 4
MAnneJ
QuickBooks Team

How is Tax Name determined in my sales receipts?

I understand the importance of correctly calculating sales tax for your sales receipt in QuickBooks Online (QBO), Steve. No worries, I'm here to help by providing the information in creating sales receipts. 

 

On the Sales Receipt page, let's ensure to input the correct address in the Shipping to box. This way, you'll not receive the message prompt "If no address is entered here, sales tax will be calculated at the Location of Sale" below the box. 

 

The screenshot is attached for your visual reference. 


sales receipt shipping to.PNG

 

Furthermore, below the Subtotal, we need to edit the Sales tax rate option, select the correct tax name, and click the See the math. It will allow you to check how the taxes are calculated based on the information given in the sales receipt. 

 

see the math.PNG

 

If you are still having issues after trying the options above, you'll want to refer to this article to understand how QBO calculates sales tax: Learn how QuickBooks Online calculates sales tax

 

In addition, I've added this article for your reference to file sales tax returns and record sales tax in QuickBooks Online: File your sales tax return and record sales tax payments in QuickBooks Online.

 

Reply to this thread at your convenience time if you need additional assistance managing your sales tax in QBO. I'll keep an eye out for it. 

email@redblockin
Level 1

How is Tax Name determined in my sales receipts?

Thank you for your response MaeAnneJ, but I think you may have misunderstood my question slightly.
 
There are literally dozens of sales receipts listed in my QBO sales tax report with the "Tax Name" Washington, Bellingham City" yet none of these customers have this billing address OR this shipping address.
 
I have customers all over the US and Canada and all of these sales receipts were entered correctly, with both the Billing address field and Shipping address field filled out correctly. But when I look at the sales tax report, most of these sales transactions have the "Tax Name" of "Washington, Bellingham City" (even some of the Canadian sales!).
 
That is why I mentioned (previously) that QBO is correctly applying sales tax to all sales orders in my sales tax nexus, WA State. These sales receipts are also listed in the QBO sales tax report with the correct sales tax region in the "Tax Name" column.
Meanwhile, the sales receipts with the incorrect "Tax Name" of "Washington, Bellingham City" are also in this list, so QBO includes them in my gross WA sales, even though no sales tax has been calculated or applied to these sales receipts (see screenshot below).
What is also baffling is that these sales receipts have been classified as non-taxable sales (thankfully), so the sales tax owing is still correct in my sales tax report.
 
The QBO sales tax report seem to be the only place where the "Tax Name" column appears. I have tried my best to find any reference online to this "field" in QBO documentation, with the thought that I might be able to change it manually, but I found nothing.
 
I'm trying to file my WA State sales tax return right now, and this annoying problem is preventing me from getting the correct gross sales figure for WA State. The rest of the report is correct because (as I mentioned) QBO has only calculated sales tax on my sales receipts that have a WA State shipping address.
 
Again, any thought on how I might fix this?

Rasa-LilaM
QuickBooks Team

How is Tax Name determined in my sales receipts?

Thank you for coming back to the Community, email.

 

I understand how frustrating it can be to encounter an issue that hinders you from achieving your goal. I am here to provide clarity on why the sales receipt is displaying the incorrect tax name. 

 

Some users have reported that sales receipts in the Sales Tax Liability report are showing up as non-taxable sales. Please know that our engineers are currently investigating this issue with the utmost urgency. 

 

We encourage all impacted users to get in touch with our QuickBooks Online (QBO) Care team and subscribe to receive email notifications. This will ensure you are kept up to date on the investigation and the permanent fix.

 

Simply follow these steps to get the contact information:

 

  1. In your company, head to the Help icon in the upper right to display the support window and choose the Assistant tab.
  2. Enter a brief description of your concern in the Type something bar and tap the Get help from a human link to see more options.
  3. In the How would you like to connect with us? section, choose Chat to initiate a conversation and Callback to speak with an agent.

 

Moreover, these resources cover topics regarding US sales and tax regulations, along with the process of fulfilling tax obligations and filing. Explore each link to learn more about the process:

 

 

We appreciate your patience while we're working through this. Reach out to the Community again if you have other sales tax concerns or assistance navigating through QBO. I'll get back to make sure you're well taken care of, email.

arthansen
Level 1

How is Tax Name determined in my sales receipts?

I have been working with QBO on this Washington State sales tax issue for months without a total solution. There are several issues which are not being addressed.

  1. The Washington State DOR publishes a quarterly publication called Local sales & use tax rates and changes. Everyone in Washington State know that there are only two tax rates per sale: state rate (6.5%) and local rate (as approved by the local agencies).
  2. Each county/city location has a DOR assigned Location Code that is used to uniquely identify the tax authority name. The Washington State taxes are complicated by the State adding RTA/Non-RTA; Incorporated/Unincorporated; cities/counties; etc. Because the QBO engineering team isn't familiar with this tax craziness we have in Washington State, they in many instances have broken a sales transaction tax rates into three (3) taxes instead of the two that is correct as noted above. 

 

Doing this messes up your "taxnames" because they are not using the actual tax names in the DOR Local sales & use tax rate publication. It makes your monthly Sales Tax Liability report incorrect because in those instances where there are split local taxes QBO is recording the sales amount twice therefore overstating the actual monthly sales in the Sales Tax Liability report. And lastly this is why the QBO Washington State Tax Liability Report does not match your QBO Monthly P&L and Sales Reports.

 

I have recommended to the Office of the President that the QBO engineers (1) add the Washington State Local Code for all tax rate for ease of filing our taxes on the DOR website; (2) stop separating the two "sub taxes and combine them into one rate as DOR does and (3) stop creating multiple sales amounts one for each tax rate thereby ensuring all QBO sales tax reports and monthly account reports match.

 

QBO should work consistently with the way Washington State DOR requires us to report!!!

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