QB online eliminated default sales tax rate for custs. We serve multiple areas & rates, but may have 200+invoices to 1 cust--now have to select rate each time. Solutions?

Hello, @GLHoffman.

Here are the bases QuickBooks base in automatically calculating your sales tax.

• Based on the state where you have nexus and are registered to collect sales tax.
• The physical address of your business and on the forms.
• The product mapping you've associated with the item you're selling.

Let's first make sure that you've added the State Tax agency of all the areas that you're doing business with. This way, when you create the invoice for a specific location the system will be able to automatically calculate the sales tax.

1. Go to the Taxes menu.
2. Choose the Sales Tax tab.
3. Click the Sales Tax Settings link.
4. Select the Add Agency button.
5. Enter the State Tax Agency details.
6. Click the Save button.

Once added, you can now create an invoice, sales receipt, or bill. Just ensure to put a checkmark on the Tax column. You'd see in the invoice total the sales tax for the specific transaction.

I've added these articles to help you manage sales tax:

• Learn how QuickBooks Online calculates sales tax
• Use custom rates to manually calculate taxes on invoices or receipts
• Manage a tax rate change

Let me know if you have other questions about using the automated sales tax in QuickBooks. I'm always here to help.

You don't understand my problem-and the abbreviated requirements of posting a question didn't allow me to explain thoroughly. 

We are a locksmith company and the physical location of our business has almost nothing to do with the tax rates we charge.  (We provide service in about 9 different tax jurisdictions.)  We go to customer's location (say an office building) every time they need locks changed.  So that customer's location determines what tax rate we charge for a new doorknob.

These are REPEAT customers so their tax rate never changes, but we may generate 200+ invoices for that customer in a single year. 

Before the QB Update made 6 or so months ago, I could set a DEFAULT TAX RATE for an individual customer.  So, when I had 200 or more invoices generated by that customer in a given year, I did not have to CHOOSE a tax rate 200+ times!  The red box in your illustration with the words "Based on Location" was NEVER a box I had to deal with.  If I created an invoice for Customer A - as soon as I opened a new invoice for that customer, the tax rate was already "selected" because that customer had a default rate.   Now I have to scroll to the bottom of every invoice and choose the correct rate from the 9 different ones I have stored.  200+ times for just one customer!  Can you grasp how frustrating that extra bit of work is when multiplied by all our repeat customers in a single year?

Now, when I look at the options I have to Edit a customer--the only option in taxes is to make them Tax Exempt - there used to be a box to indicate a default tax rate.

I was hoping that someone had figured out a way to overcome this latest "improvement" -- which to me just shows, again, that the software creators who work on Quickbooks Online, don't actually ask the users of their product if the latest idea is going to be beneficial or just create a ton more work! 

But thanks for trying to help.

HI... 

I was wondering if you ever found a solution?  I have the same type of problem and I'm afraid it will keep me from using Quickbooks.  

@Tulemom 

Explore this AST Filing and Reporting app to integrate with your QBO as workaround.

https:// taxjar.grsm.io/mytax

For being "always here to help" why haven't you replied with a solution to our actual problem?

I didn't find a solution so we aren't using Quickbooks Online and are using Quickbooks Desktop. The desktop version allows us to have different sales tax rates assigned to customers.  Seems like such a simple thing that I can't understand why the online version doesn't offer it.

We are a virtual company that services over 15-20 tax jurisdictions. How do I set default tax rate per customer.  Based on location is setting the wrong rate over half the time.  This is costing me time and money for incorrect rates.

Hi there, THElectrical.

I'm here to share some information about how the Automated Sales Tax feature works.

We're unable to assign a default tax rate to the customer's profile. By default, QuickBooks automatically calculates the total tax rate based on the address where you sell/ship, the type of product you offer, and the customer's tax-exempt status. 

Take note that the rate may also change if you ship products or perform services at your customer's address. That said, please make sure that you have the correct tax status, billing address, and shipping address of your custom... so the amount will be calculated properly.

However, if it still doesn't work for your business you can set up and apply custom tax rates when you make a sale. This option would be also helpful in tracking special taxes (meal and excise taxes). 

In addition, I've attached some articles that will help you manage your tax payments and track how much sales tax you owe: 

• File your sales tax return and record tax payment
• Check how much sales tax you owe

I'll be right here to assist you again if you have any other concerns or require further clarification about this topic. Feel free to tag me in the comment section.

So how would you do?

Services below:

Capital improvement labor non-taxed

Materials for capital improvement use tax paid on sale price.

CUSTOMER IS: A general contractor who lives in ie Wake Co 7.25% and work site is in Durham Co 7.5%

Currently I use  a sales tax of CI Durham 0% taxable and manual calculate the use tax to pay since the customer will not see any tax on bill.

@KlentB 

Here's the problem- to quote your response "We're unable to assign a default tax rate to the customer's profile."  This feature was previously a part of Quickbooks online!  You are not unable - you removed it !!

Please notice the link you provided to "make sure you have the correct tax status, billing address, etc." only allows me to indicate:

• Is Taxable

Is or is not Taxable is not the problem!  I already have 9 custom tax rates built into our QB account.  But I have to individually select the appropriate one EVERY time I enter an invoice for a REPEAT customer!  

I'm just begging for the people who make decisions about what features to remove from QB online to go back and put back a feature that was previously there!