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Frequent Explorer *

How do I set up sales tax and with options for multiple rates?

I need to sell some items at 8.625% (t-shirts, coffee mugs, admission tickets) and some items at 22.125% (alcoholic beverages at our concession stand. 22.125% = 8.625% sales tax + 13.5% mixed beverage tax).  I simply cannot find a way to enter multiple tax rates, and it seems like such an obvious thing to do. QBO is setting the tax rate for me automatically based on location, and I think that is part of the problem. Is there a way to turn the auto feature off and add additional tax rates for different items (products), basically allowing me to choose what rate I want to apply on a per sale basis?

7 Comments
Established Community Backer ***

Re: How do I set up sales tax and with options for multiple rates?

you have to get out of auto sales tax to start with

then in manual sales tax you can create a sales tax item for the standard rate, and a combined item for the sales tax + booze tax. And you decide what to use on the sale

 

That said, you still can not use both sales tax items in QBO on one sale, it is not as flexible as desktop in this area.  So, one sale for stuff, and one sale for booze

Frequent Explorer *

Re: How do I set up sales tax and with options for multiple rates?

 
Frequent Explorer *

Re: How do I set up sales tax and with options for multiple rates?

Could you please tell me how to disable auto sales tax?

Anonymous
Not applicable

Re: How do I set up sales tax and with options for multiple rates?

 Hello there, okshakes.

 

If you migrated from automated sales tax from manual tax center, you can revert it back through the steps below:

  1. Go to Taxes from the left menu.
  2. At the upper right corner of the window, choose Sales tax settings.
  3. Select Here on the message "Want to temporarily switch to the old tax center? Switch here."

Please don’t hesitate to drop by again if there’s anything else we can help you with.

Frequent Explorer *

Re: How do I set up sales tax and with options for multiple rates?

I don't have that option. I started fresh with QBO. This seems like such an easy thing that should be more intuitive...what am I missing? I just need to charge one tax rate for non-alcoholoc sales, and a different rate for alcohol sales. What do restaurants and bars do, for instance?

Anonymous
Not applicable

Re: How do I set up sales tax and with options for multiple rates?

Thanks for confirming, okshakes.

 

If you started QuickBooks with automated sales tax already activated, you can contact the support team to disable this feature. Here’s how:

  1. Open your QuickBooks Online Company file.
  2. Click Help at the upper right corner.
  3. Click Contact us button at the bottom.

Please note that you can no longer re-enable the feature once disabled.

 

Reach us again if you still need help while working with QuickBooks.

Frequent Explorer *

Re: How do I set up sales tax and with options for multiple rates?

I called support and was told that the engineers were working on a solution where multiple tax rates could be added, while still using Automated Tax.

 

Until that feature is implemented, I just ended up creating a separate liability account, and feed into it using a service item labeled liquor tax, that calculates the rate of tax due based on my area (13.5%), then I write a check and pay that when filing is due. I still use the sales tax feature to pay regular sales tax.

Instructions can be found here:

https://quickbooks.intuit.com/community/Help-Articles/Enter-sales-tax-amount-manually/m-p/185713

 

I hope this helps some other people in my situation.

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