Thank you for bringing up your concern about the state tax on invoices in QuickBooks Online.
I understand how crucial it is to include tax on your invoices. I'm here to help guide you to an alternative method for displaying the tax on the invoice.
There are multiple reasons why your sales tax might not be calculated correctly on your invoices.
Let me explain how QuickBooks Online determines the total tax rate for each transaction. Here are the details:
- Your customer’s tax-exempt status
- Where you sell and where you ship
- What you sell
The tax status of your customer might be causing the sales tax not to be calculated on the invoice. You can refer to this article to determine whether your sale is exempt from tax: Conducting non-taxable sales
Another consideration is the state in which you sell and ship the product or provide the services.
To address this issue, please verify the following details:
- Your customer's tax status - Navigate to the Sales menu and select Customers. Click on the customer's name and choose Edit. Then, check the Tax info to ensure that the "This customer is tax-exempt" box is not checked.
- The business location or the destinations where you sell/ship the product.
- The method you use to assign sales tax categories to your products and services.
Furthermore, you can generate the Sales Tax Liability report to access your sales tax information at any time.
Please feel free to mention my name in the comments below if you have any additional concerns or questions beyond sales tax. I am always here to assist you.
