Did you get a notice that your sales tax rate is changing? Here's how to change it in QuickBooks Online:
Note: You can only edit component rates. To edit a combined rate, you must first make changes to its component rates.
If you don't see the settings below, you may be using Auto Sales Tax feature. See Set up and use Automated Sales Tax for more information.
To edit Sales Tax Rates:
- Go to Taxes from the menu, then choose Sales Tax.
- Under Related Tasks, select Add/edit tax rates and agencies.
- In the Sales Tax Rates and Agencies table, choose the rate you want to change and select Edit.
- In the Edit Sales Tax Component window, change the rate. You can also change the component name if you like.
- Choose Save. Once done, it returns to the sales Tax rates and Agencies table and highlights the rate you changed.
What happens when you edit a sales tax rate:
- The new rate is available for new transactions only
- If you create a new transaction but use dates in the past, the transaction uses the new rate
- After you edit a rate, the earlier rate can no longer be used
- Existing transactions that used the earlier rate remain unchanged unless you edit the transaction and specifically select a different sales tax rate
- For recurring templates that use the changed component, new transactions created with the template use the new rate. Existing transactions created with the template and the earlier rate remain unchanged
- Reports show the data for both rates (before and after) if there are transactions for both the rates in a particular period
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Set up a live video appointment or message your QuickBooks-certified bookkeeper whenever you need help with new sales tax rates. Learn more about QuickBooks Live Bookkeeping.