My invoices are defaulting the sales tax calculation to "based on my location." How do I change that to based on my client/customer location?

Hello @psieric,

Sales tax is calculated base on the physical address of your business. I'm want to ensure that you can change the address of your sales tax base on your client's location.

First off, let's create a custom sales tax rate base on the agency of your client's location. Here's how:

1. Go to the Taxes menu and select Sales Tax.
2. Select Sales Tax Settings.
3. Click Add agency.
4. Choose a city or state of your client's location.
5. Select a filing frequency.
6. Enter the date base on you start tracking sales tax in this location.
7. Click Save.

Once done, you can manually enter the address of your client when creating an invoice. To do so:

1. Go to the +New button.
2. Under CUSTOMERS, select Invoice.
3. Select one of your clients in the Customer field.
4. Enter the details as necessary.
5. Click See the math.
6. On the Your tax agency and standard rate box, select the Pencil icon.
7. Enter your client's location.
8. Click Close.

Additionally, here's an article you can read to learn more about the automated sales tax calculation: Set up and use automated sales tax in QuickBooks Online.

You can also visit and read through this helpful article for the steps in preparing and filing your sales tax return and recording the payment you've made: File your sales tax return and record tax payment in QuickBooks Online.

If there's anything else that I can help you with, please let me know by leaving a comment. Stay safe!

@psieric 

As additional reference, explore this AST Filing and Reporting app.

https:// taxjar.grsm.io/mytax

That didn't solve the issue. I need the invoice to calculate based on my client's address.  I put in the clients address in the shipping to field and it still calculates tax based on my business location. In Ohio, the 88 counties all have different sales tax rates. I need to charge sales tax based on which county my client is located. 

Hello @psieric,

Thank you for sharing the results after following the steps I've suggested above. Since it didn't calculate your sales tax base on your customer's location, we can consider manually adding the sales tax rate base on your customer's agency and location.

To do so:

1. Go to the +New button.
2. Under CUSTOMERS, select Invoice.
3. Select one of your clients in the Customer field.
4. Enter the details as necessary.
5. On the Select tax rate menu, select +Add rate.
6. Select Single.
7. Enter the agency name base on your customer's location. Say Ohio Department of Taxation.
8. Type in the sales tax rate.
9. Click Save and then, Save and close.

Additionally, here's an article you can read to learn more about the accuracy of your sales tax calculation: Learn how QuickBooks Online calculates sales tax.

You can also check and read through the steps outlined in this helpful article to pull up a report and understand how much sales tax you owed: Check how much sales tax you owe in QuickBooks Online.

Stay safe and leave a comment below if you have any other questions. I'll be here to lend a hand. 

It sounds like your client is in Ohio. Is your business in Ohio as well? I understand that the rates may be different in different counties, but for Ohio, you are supposed to calculate sales tax based on your location... not the client's.

From https://www.taxjar.com/states/ohio-sales-tax-online/#how-to-register-for-a-sales-tax-permit-in-ohio: "Ohio is an origin-based sales tax state. So if you live in Ohio, collecting sales tax is fairly easy. Collect sales tax at the tax rate where your business is located."

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?

Welcome to the QuickBooks Community, jacque1.

Please know that the option to automatically collect the tax for the state where the property is delivered to the customer is currently unavailable. You'll have to change the tax manually every time you create customer's invoice. Let me provide additional insights on how sales tax calculation works in QuickBooks to ensure you can manage this accurately.

Please know that aside from the location of sale or the "ship to" address you add and on business location, QuickBooks also automatically calculates the total tax rate for each sale based on your service or product's sales tax category. Rules for how to tax a product can change from state to state. You can assign tax categories to anything you sell. This lets QuickBooks know how much tax you need to charge based on what exactly you're selling. 

You can refer to this article for further details: Learn how QuickBooks Online calculates sales tax.

In case you need steps on how you can record, adjust, and delete sales tax payments in the tax center, you can read this article: Manage sales tax payments in QuickBooks Online.

I'm always here to help if you have any other concerns or questions about managing sales tax in QBO, jacque1. Just tag my name in the comment section and I'll get back to you as soon as I can. Have a great day!

Clicking on the super helpful (I've read this all before fifty times) link provided above brings me to a document that states:

How QuickBooks calculates the correct tax rate on each sale

QuickBooks automatically calculates the total tax rate for each sale based on the following:

• Your customer's tax-exempt status
• Where you sell and where you ship !!!!! << lies
• What you sell

Nowhere does the "where you ship" part come into play. 

THIS is the problem with the new system and what needs to be fixed - before all the people who have been using QuickBooks/Intuit for DECADES find another software.  Because simply put, having to manually fix every invoice through what is supposed to be an automated process is wrong.  The fact that QuickBooks has failed to fix it for two years now is ridiculous.  

*** For ConnectWise users:  Please note, depending on your integration method, after manually fixing the tax on invoices in QBO - Go back to your Accounting Interface and see if the effected invoices are still there in Unposted Invoices. If so YOU NEED TO SELECT THEM AND SELECT REMOVE RECORDS FROM THE ACTIONS DROP DOWN MENU. 

Name the report anything - (Like Tax with the date fixed or remove each invoice as a sperate batch, you cannot simply list all invoices if there are too many because there are limited characters you can use, I think 16) - this will hold a record and stop these same invoices from syncing and ADJUSTING YOUR TAXES AGAIN!!

I wish I could say I found a way to stop it from happening but this should at least stop it from happening over and over.  Good luck all - Please post if you find good results with the new accounting software we'll all move to by 2025 - I've already begun my research.