How do we turn off automatic sales tax?

Hello, not sure it can be turned off once turned on. However, when creating invoices you can deselect the product service item from being taxable. Or go into the product service list by selecting sales on the left-hand side toolbar then in there select products and services and go into each item and uncheck the taxable box. Select the edit hyperlink on the specific product or service item, toward the bottom you will see the sales tax category is a pull-down window and choose nontaxable, then save and close. By doing this when you go to create an invoice that specific item will not be taxable anymore. I hope that helps. All the best.

I'm glad you reached out to us today, @donna49.

The option to turn off automatic sales tax or reverting it to manual calculation is only available for old QuickBooks users. You can follow these steps if you used to have the manual sales tax calculation and wants to switch back to it:
 

1. In the left navigation bar, go to Taxes.
2. Select Sale Tax.
3. Click Sales tax settings in the upper right corner.
4. At the bottom of the screen, you'll see "Want to temporarily switch to the old tax center? Switch here."
5. Click the here link.

However, if you're using a brand new QuickBooks account with automated sales tax enabled, you can reach out to our phone support. They have the available tools that can set your sales tax feature to manual. Here's how:

1. Click the Help icon.
2. Hit the Contact Us button at the bottom. 
3. Enter " turn off automatic sales tax" in the description, then click Let's talk.
4. Choose Get a callback.

Please check out our support hours to ensure that we address your concerns on time.
 
We're open 24/7 and always ready to assist. I'm looking forward to helping you out in the Community, @donna49.

This may work as a work around.  I'll give it a try.  Thanks!

Thanks for your quick reply.  We are new to QBO.  I've tried calling the helpdesk and two different people have told me that reversing back to manual is not an option.  If we do not find a way to turn off automatic sales tax, we will have to leave QBO at the end of the month.

We appreciate you reaching out to our Customer Support Team, donna49.

The option to switch back to the manual sales tax once you're using an automated sales tax is unavailable. However, you can export your data into QuickBooks Desktop. Just download a free trial of QuickBooks. Then, follow the steps and details in this article to export the data: Export and convert your QuickBooks Online data to QuickBooks Desktop.

Once done, create a new QuickBooks Online company and import your QuickBooks company file. From there, avoid turning on the automated sales tax feature in your new Online account. 

For the detailed steps about importing your QuickBooks data, please refer to this article: Move your QuickBooks Desktop file to QuickBooks Online.

If this option that I've provided is not suitable for your business, I'd suggest reaching out to our Customer Support Team (with your reference or case number). They'll pull up your account in a secure environment and check further on what they can do. Just follow the steps provided by my colleague to connect with them.

I have a link here where you can find articles about managing your sales tax: https://quickbooks.intuit.com/learn-support/en-us/taxes/pay-sales-taxes/08?product=QuickBooks%20Onli....

The Community will always have your back if you need a hand with running sales tax reports or any QBO related. Take care always.

Thank you very much.  Yes, I also had this idea yesterday that we could cancel our current QBO and start a new one.  However, obviously, that is a lot of work as well.  Especially since we are using the T-Sheets.

We also have another issue related to sales tax.  We need a report of the gross sales for our non-taxable customers.  In QB Desktop it was on the Sales Tax Liability Report but that is not the case with QBO.  Any suggestions?

Thank you,

Donna J

Hello donna49,

You can run a Taxable Sales Detail report in Quickbooks Online and customize it for non-taxable customers to get the report your wanting. Here's how you can do so:

1. Go to the Reports tab.
2. In the Search engine, type Taxable Sales.
3. Select Taxable Sales Details.
4. Enter the appropriate report period, accounting preference, and so forth.
5. Choose the Customize box.
6. Go to the Filters, then put a check-mark next to Customer Taxable. Also, you can make additional customization if necessary.
7. In the drop-down beside Customer Taxable, click Non-Taxable.
8. Select Run Report.

Once the report is generated, you can email, print, or export it, by selecting the icons above the report. Keep me updated, and if you have any more questions, let me know.

We've tried that, and have even called in twice for help, but that report is not pulling our non-taxable sales.  Do you know why it wouldn't be working?  Thanks, Donna J

Hello donna49.

You can consider pulling up the Transaction List by Customer report. Let me guide you how.

1. Go to the Reports tab.
2. Under Sales  and customers, find the Transaction List by Customer report.
3. Tap Customize.
4. Click on the Rows/Columns drop-down menu.
5. Choose Tax Amount and Taxable Amount. 
6. Click Run report.

The zero amount in the Taxable Amount column is the Non-Taxable sales of your customers.

You can click the save customization to pull up this report easily in QuickBooks. Simply, locate it on the Custom Reports tab when needed.

You can read and learn more about the process through this article: How to Customize Reports?

Please let me know if you have other concerns. I'm here to lend a hand. Take good care.

I wish that would work.  I have tried many variations of these reports but nothing is working.  For instance, I need to know the gross sales for each of the non-taxable reasons.  So, on the customer page, on the Tax Info tab, we have selected, non-taxable, and the reason why they are non-taxable.  For instance, Resale, Govt, Education, etc.  So now, what we need for the department of revenue, is a report that tells us the gross sales for each of those sales tax exemptions reasons.  Any other ideas?  Thanks,

Hey there, @donna49. 

Thanks for responding about running a report with the gross sales for each non-taxable customer. 

At this time, QuickBooks Online doesn't offer a report that shows the gross sales for every customer. I will submit feedback to our Product Development Team for them to review and consider making this a feature soon. 

For now, you can refer back to the steps my colleague @SashaMC provided with running a Taxable Sales Detail report and setting it to non-taxable. 

If you have any more questions or concerns, please don't hesitate to comment below. Have a good one!

This is the best solution we've received yet.  However, we found something else that works better for us.  Thanks for your help!

I just spoke with support and they said this is no longer an option. Your only option is to migrate everything to desktop, then migrate everything back to online and never turn on the automated sales tax option. Once it is turned on, it cannot be reversed EVER. How ridiculous is that?!

We are a service based business and our taxes are based on the location of the service, not our location.  I turned on automatic sales tax thinking it would help simplify this for us, now I have to switch each clients tax rate in QBO on each invoice to make my report right to file with my state, Wisconsin.  If an item can be turned on, it can be turned off.  QBO should fix their not helpful, more work to us clients sales tax issues!  I spend hours fixing this each month!

We never even turned on any automated sales tax!  None of our services are taxable, yet here we are, stuck with the sales tax line on every invoice unnecessarily.  Quickbooks has a lot of good features, but far too many "you can't change that" items.

I couldn't agree more.  This new sales tax center is useless.  Non Taxable sales don't show up on the Tax Liability report.  Gross sales don't match the P&L.  QB no-support team suggest I go in and edit every non-taxable invoice adding the taxable check mark and then unchecking it for it to add to my report and that doesn't work.  They have appointed themselves the sales tax police and for what reason?  The new sales tax center is garbage and full of bugs, just like QB Payroll Core.  I cannot believe they just keep raising the prices and the software is getting worse by the day. 

I tried turning the sales tax center off so I could just use the sales tax calculated by my third party app and it won't let me because I collected sales tax on existing items.  Really!?

Support doesn't know! Support search online the same way I do! HOW did intuit create a feature that CAN NOT BE turned off????? The automatic sales tax!

I am in the same boat, we migrated from desktop and never turned on auto tax, but yet it is on. 

That is not the worst part for us. The worst part is, we cannot import invoices because of this issue. I get an error that says importing invoices does not support tax at this time. However we sell a service and do not even collect sales tax!

I am frustrated that this is yet another case of being sold a bill of goods that does not work.

Hello, @jbrackman.

I understand the challenges you're facing with importing invoices. It's important for the software to work smoothly for your business needs.

I encourage you to add your vote for this one by sending a feature request in the Feedback section within QuickBooks. It's essential that the software accommodates various business types and tax situations, and your experience highlights an area where improvements can be made.

Here's how:

1. Select the Gear icon at the top, then Feedback.
   
2. Enter your comments or product suggestions then select Next.
3. You'll be provided a list of suggested Help articles related to your comment. You can read through them or select Skip and send message.
4. From the drop-down, choose the appropriate category, then select Send message.

In the meantime, you might want to explore third-party app options to check if any of them support importing invoices. You may follow these steps:

1. On the left panel, click Apps.
2. Go to the Find Apps tab.
3. Use the search bar to look for an app.

Refer to this article for more info: Install and Use Apps.

Additionally, feel free to check out this link which offers guidance on how to personalize the visual aspects of your forms: Customize Invoices, Estimates, and Sales Receipts.

Keep me posted if you have any additional questions about importing concerns. I'll be right here to help.