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cameronsawyer
Level 1

How can I set up sales tax in multiple states?

 
1 Comment 1
ReymondO
QuickBooks Team

How can I set up sales tax in multiple states?

Hi there, @cameronsawyer.

 

The calculation of tax is based on the location of the buyer. QuickBooks Online calculate your sales tax rate base on the:

 

  • Physical address of your business..
  • Physical address listed on sales receipts or invoices..
  • State where you're registered to collect sales tax.

 

When your customers are located in other states,  your tax situation will vary depending on what state you are located and where you are selling.


You can set up tax in multiple tax location by adding a tax agency in QBO. Here's how:

 

  1. Go to the Taxes menu.
  2. Select Tell us where you collect tax.
  3. Click Add agency.
  4. Fill in the information, then click Save.

 

The shipping address in the customer's profile lets QuickBooks calculate sales tax accurately. If this information is not available, the calculation will depend on your listed company.

To know more about the basics of collecting sales tax, you can check this article: Sales tax basics.

 

Let me know if you need further assistance with this. I'll be around to help you. 

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