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Default customer sales tax rate in QuickBooks Online

In QuickBooks Online, you can either mark each customer as taxable or not or mark all of them as taxable at a default rate. If they are marked as taxable, you can always choose which tax rate to apply to each customer, otherwise, they will be taxed at a default rate, if you haven’t set up a rate for each of them on the sales form yet.

Note: If you don't see these settings, you may be using Auto Sales Tax feature. See Set up and use Automated Sales Tax for more information.

To mark a customer as taxable:

  1. Select Sales from the left menu, then Customers at the top.
  2. Choose a name of the customer.
  3. Select Edit at the top.
  4. From the Tax Info tab, put a check mark on the "This customer is taxable" checkbox.
  5. Select Save.

To set a default sales tax rate for all customers:

  1. Select Taxes from the left menu.
  2. Select Sales Tax at the top.
  3. From the Related Tasks field, select Edit sales tax settings.
  4. Select the Default sales tax drop-down arrow then choose the tax you would like to appear as the default sales tax.
  5. You can also choose to Mark all new products and services taxable and Mark all customers taxable
  6. Select Save.

Your new default rate will now show up on all sales forms. However, if you want to charge a customer a different sales tax rate, use the Tax drop-down arrow on the sales form to change the tax rate. If you've accidentally created invoices without sales tax in the past, you'll be able to edit those invoices to reflect the proper sales tax.

If you are unsure about which customers pay sales tax and at what percentage, run a report to see which customers are currently marked as taxable.

To run a taxable customer report:

  1. Select Taxes from the left menu.
  2. Select Sales Tax at the top.
  3. From the Related Tasks field, select View taxable customer report.
  4. A report will display with the customer's information as to whether they are taxable or not and at what rate. You can further customize this report if needed.

If you have users with limited access for either Customer and Sales (A/R--Accounts Receivable) or Vendors & Purchases (A/P--Accounts Payable), what they can do in the Sales Tax Center is also limited to the scope of their roles. See Sales Tax Center and users with custom access and Sales tax in QuickBooks Online, for more information about sales tax.

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