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Anonymous
Not applicable

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

 
45 Comments
Anonymous
Not applicable

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

I'm glad you reached out to us today, @Anonymous.

 

Let me help share some information about the automated sales tax in QBO.

 

Once you've activated the sales tax feature, you can no longer turn it off. To ensure you will not collect any taxes, you'll need to edit the customer's tax information.

 

Here's how:

 

  1. Go to the Sales tab and click Customers.
  2. Click the Edit tab.
  3. Open the Tax info folder and select the Default tax code.
  4. Hit Save.

Once done, every time you create an invoice for this customer, the tax rate will no longer apply.

 

That should do it. I'm just a post away if you have other questions about sales tax. I'm always here to help.

 

 

Rustler
Level 15

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

call intuit and tell them you are a cash basis sales tax payer and you need to be switched back to manual sales tax.  QBO auto sales tax is only accrual based sales tax

christylist
Level 2

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

Is there a way to do this for all customers at once?  Very time consuming to do them individually.

Angelyn_T
QuickBooks Team

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

Hi there, @christylist.

 

Please allow me to join the thread and help share information about automated sales tax in QuickBooks Online (QBO).

 

Yes, to make sure that taxes will not be collected from your customers, you have to edit the customer's tax information individually following the steps provided by my colleague LilyC. There's no option to do it for all customers at once.

 

As of now, there isn't a way to switch back to the manual sales tax once you're using an automated sales tax. However, in the meantime, if you really wish to turn off the automated sales tax, I recommend contacting our Support Team so our engineers will able to help you further and check if they'll be able to find ways to turn this off.

 

To contact support, you may check it here: Contact the QuickBooks Online Customer Support team.

 

In addition, to learn more about sales tax, you can read this article: Switch to US Automated Sales Tax.

 

You can always add a post/comment below if you have any other sales tax questions. I'll be always happy to help you!

LLuke
Level 1

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

Since we need to collect sales tax for services provided we can't not collect sales tax. In Washington State it is based on the location where the service happened ie the city.  I wanted to verify with someone more knowledgeable than I am to see if my work around is okay. I edited the client and placed the client's address into the shipping window. Then when I completed a dummy invoice it picked the sales tax based on the shipping address not the location of our business address.  I watched the total sales tax go from 8.7% to 8.5%.  The client uses "Jobber" for all their work and we sync to QBO  we just started receiving the warnings from the sync issues and discovered the auto sales tax snafu. 

Anonymous
Not applicable

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

Hi, @LLuke.

 

Let me help share some information about the automated sales tax in QuickBooks.

 

Yes, you can use that workaround if you need to override the amount of you're sales tax. In using the automated sales tax, you'll have the option to base on the address you're shipping from and to when collecting sales tax for these agencies. On the Tax Categories and Totals, you can override the amount by clicking the provided link. 

 

 

If you're using the old sales tax before and wants to switch back, you can do so by following the steps in this article: Continue to old tax center.

 

Keep me posted if you need other information about tracking your sales tax in QuickBooks. I'm here to help.

vpcontroller
Level 11

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

This screenshot below is based on the QBO Monthly Update Webinar from November 30, 2017. Per Intuit, Cash basis automated sales tax system was supposed to be available in the early part of 2018. How come it's still not available in May of 2019 yet? That's the question everyone should be asking, I think!

 

http://km-ext.ebs-dam.intuit.com/content/dam/km/external/AHH/ITK%20Nov17%20FAQ.pdf

 

===

cashbasis_automatedsalestax.PNG

 

 

====

 

cloudledger
Level 2

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

This new sales tax system is terrible.  I really need control over how the invoice looks and how the sales tax is applied. The "T" on the invoice looks TERRIBLE!
I'm trying workarounds but the invoice won't save unless I do it the way intuit intended.
I am extremely frustrated and I am not looking forward to the embarrassing conversation this will require with several clients on top of everything else like the subscription prices going up.

RenjolynC
QuickBooks Team

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

Hi there, cloudledger.

 

If you've migrated to the automatic sales tax from the manual feature, you can switch it back by following these steps:

  1. On the left panel, click Taxes.
  2. Click the Sales Tax Setting located in the upper right section.
  3. On the Edit Settings page, click the Switch here link beside Want to permanently switch to the old tax center?.
  4. Click the Switch button.

I'll also share your suggestion to our Product Engineers about the sales tax customization. We update QuickBooks based on our customer's request. This option might be included in the future.

 

Feel free to leave a comment if you have any other concerns. Thanks.

brock8282
Level 1

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

I'm not seeing the "Want to permanently switch to the old tax center?." text or "Switch here" link

PreciousB
Moderator

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

Thanks for joining this conversation, brock8282.

 

I'm here to help you switch back to the old tax center.

 

The "Want to permanently switch to the old tax center?" option is only available for the QuickBooks Online (QBO) users who have migrated from the manual sales tax feature to automated sales tax.

 

image.png

 

If you have a brand new QuickBooks account with Automated Sales Tax already enabled, you won't be able to see this option.

 

For more details, check the "Frequently Asked Questions" section of this article: Switch to US Automated Sales Tax.

 

Should you want to be removed from the automated sales tax, I recommend contacting our QBO Customer Care Team. They have the tools to pull up your account in a secure environment and can further assist you in disabling the Automated Sales Tax.

 

Here's how to reach us:

  1. Select the Help icon in the upper right of the screen.
  2. Choose Contact us on the pop-up. 
  3. Enter a topic in the How can we help? field (ex. support) and choose Continue
  4. Click Get our phone number.
  5. Enter your contact information.
  6. Click Call me.

image.png

That should help you get pointed in the right direction. 

 

I'm sure they will take care of this for you. I'd appreciate if you can update me on how it goes. I'll be here if there's anything else you need. Have a good one.

eurekaspringscoffee
Level 1

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

The automated sales tax system is TERRIBLE!!! I have been a Quickbooks customer for over 10 years, using the online system from when it started. Our city has a special tourist sales tax that I have to collect and pay and there is no way to put it in. And don't give me a workaround! I got Quickbooks for my new business to help me manage my time better, not spend more time trying to figure out how to trick the system. I am looking for another option at this point!

Brigitte333
Level 1

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

Hi how do you find the edit on customer?  

AlexV
QuickBooks Team

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

I can definitely show you how to edit your customer's information, Brigitte333.

 

You can follow these steps:

  1. Let's go to Sales tab and select Customers.
  2. Select the customer's name.
  3. You'll see the Edit button before the New transaction drop-down.

You'll see the Customer information window once you'll click on it. 

edit.PNG

 

Here are some of the articles you might want to check:

I'd be glad to provide additional help. Let me know if you need anything else.

d_barnum
Level 2

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

I'm also using Jobber and having the same type of problems with jobber's sync failing due to automatic tax settings.  Additionally, I plan to integrate with Square as well.  I'm afraid this will have the same problem.  I have a newer quickbooks account without the option to go back to the old tax center.

katherinejoyceO
QuickBooks Team

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

Welcome and thanks for following this thread, @d_barnum

 

I understand your troubles about syncing with Jobber, however, it works differently with Square as the sales tax needs to be turned ON in your QuickBooks Online account regardless of whether you're charging your customers with it or not.

 

Here's how you can link your Square merchant account with QuickBooks: 

 

  1. Go to the Apps tab on the left menu.
  2. Choose Find apps at the top.
  3. Enter Square in the Search apps field, then click Sync with Square.
  4. Click the Get App Now and follow the prompts to complete the process. Make sure to allow Intuit to access your Square account. 

 

For more information about QuickBooks and Square integration, visit https://quickbooks.intuit.com/integrations/square.

 

You can also check out our help article: Sync with Square Hub. It contains knowledge-based articles that can answer your frequently asked questions as you go through the sync process. 

 

Feel free to visit us again of you have more questions about QuickBooks. We're always here to help. 
 

plung
Level 6

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

@d_barnum 

explore this 3rd party tax solution and integrates it with QBO

https://taxjar.grsm.io/mytax

 

artredstone
Level 2

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

This only allows me to select tax exempt.  It doesn't allow selecting my old manual combined tax rate.  The real problem is that the calculated tax from the automated system is incorrect.  But until that gets corrected, if ever, we need to go back to the old manual system.

 

artredstone
Level 2

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

This process of editing the customer tax code only allows the selection of tax exempt. It won't let me select the combined tax rate I had in the manual system before.  

artredstone
Level 2

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

Unfortunately, the override only allows one tax rate, and we have 3:  State, County, and Special District.  So when I print the tax liability report it doesn't give me the three tax payments anymore.  Either the automated tax calculation needs to be corrected, or we need to be able to turn taxes off, which it won't let us do.  Someone in development needs to fix the problem to allow turning off taxes, and going back to the manual system.

artredstone
Level 2

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

The switch here button does not exist.  Only the turn off sales tax, and it doesn't allow us to turn it off.  If you see a switch button on your screen, maybe post a screen shot.  It doesn't appear to exist.

KlentB
QuickBooks Team

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

Hey there, artredstone.

 

Once we activated the Automated Sales Tax feature, we can no longer turn it off. We still have the option to go back to the manual version once. For specific tax rates like meals, alcohol, and lodging, you can override the total rate on transactions.

 

Since you don't have the option to go back to the old one, we can create a new company so that you can use the manual version. To bring in your data to the new company, we'll have to

export and convert your QuickBooks Online company file to QuickBooks Desktop first. Then, we can move the QuickBooks Desktop file to  new QBO company file. You can download the trial version of QBDT through this link: Download a trial of QuickBooks Desktop.

 

I encourage you to read this article to learn more about limitations when you convert from QuickBooks Online to QuickBooks Desktop.

 

If there's anything else I can help you with, don't hesitate to tag me in your comments below. I'll be right here to keep helping.

JohnITS
Level 1

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

I keep seeing that once activated the Automatic Sales tax cannot be turned off. Now I went in and killed off the tax agency and I wiped all the sales tax off the invoices. I still can't turn this off? Why not. 

I switched to a new vendor. That vendor assumed I collected sales tax. The state I live in has a weird quirk in our laws. Products are assumed taxable. Services are not, and must be specifically mentioned to be taxable. The service we provide is not mentioned, so it is not taxable.

This vendor kicked off collecting sales tax. I haven't been paid any, I've corrected all the invoices. etc. There is no way to turn this off? Are you kidding me? 

I need to start a new company to use this. It is preposterous that an error cannot be corrected. Because of this I cannot import invoice data because the invoice import doesn't account for sales tax? 

JohnITS
Level 1

How do I turn off automated sales tax? I unchecked taxable on our products and cleared the taxes on the invoices but it is still saying we collected taxes & won't close?

I keep seeing that once activated the Automatic Sales tax cannot be turned off. Now I went in and killed off the tax agency and I wiped all the sales tax off the invoices. I still can't turn this off? Why not. 

I switched to a new vendor. That vendor assumed I collected sales tax. The state I live in has a weird quirk in our laws. Products are assumed taxable. Services are not, and must be specifically mentioned to be taxable. The service we provide is not mentioned, so it is not taxable.

This vendor kicked off collecting sales tax. I haven't been paid any, I've corrected all the invoices. etc. There is no way to turn this off? Are you kidding me? 

I need to start a new company to use this. It is preposterous that an error cannot be corrected. Because of this I cannot import invoice data because the invoice import doesn't account for sales tax? If I voided all the sale taxed invoices (rather than clearing them) would I be able to revert?

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