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I switched from Desktop to Online in Jan due to the cost increase for Desktop. The biggest frustration has been working with the auto sales tax "feature." I did not want the 3 tier state/local tax breakdown shown just the overall state tax. I ended up adding a custom rate and then disabling my state tax authority. Auto sales tax is still on but I set all my customers to taxable with my custom rate, then for the non-taxable customers, changed them back to non-taxable. So far in Feb/March April it works, when I pull a sales tax liability report it shows the taxable/non-taxable/total sales/tax amount correctly and just the single tax rate. A couple times on an invoice it has reverted to the location but we use the edit tax line in the invoice and change it as needed. My bookkeeper is 87 and was beyond frustrated with the location BS. All happy now.
I don't understand what location based is all about. It always sets the tax rate to my business location, which is no help at all.
If you want to use it you can start by adding the tax authorities for the different customer locations and then setting the ship to address of your customer to their physical and it should change the tax based on that.
In my case 99% of customers are local and the ones that arent are non-taxable and it was just an annoyance to have it intruding all the time.
Can you point me to Intuit's up-to-date documentation on location-based sales tax?
Greetings, @Service! We're delighted to have you here in our community forum. Our team is committed to delivering exceptional user experiences, and we truly value your ongoing support as we strive towards that objective. I'm pleased to inform you that I have some insights to share with you about how QuickBooks Online (QBO) computes sales tax.
QuickBooks simplifies tax calculations for sales transactions by automatically computing the sales tax based on the location of the transaction. This ensures accurate filings and ease of use. To provide more details, QuickBooks calculates the total tax rate for each sale based on the following factors:
To set up custom tax rates, please refer to the steps below:
I’ve added screenshots for visual reference.
For further details, refer to this article: Use custom rates to manually calculate taxes on invoices or receipts in QuickBooks Online.
Additionally, you can take your time to learn more about how QBO calculates sales taxes by referring to this article: Learn how QuickBooks Online calculates sales tax.
For future reference, I'm adding these articles to learn more about managing sales tax in QBO:
It'll always be my pleasure to help if you've got other questions. Use the Reply button and leave your comment below if you need further assistance with sales taxes so we can assist you further. Have a great day ahead!
I have 15 combined rates already built within QBO. I enter the address into the profile of of each customer when I add the customer. If I create an invoice, the system always assigns the tax rate of my business address, until I update it by choosing one for where the customer is located. There is no time savings that I have found so far.
No sorry as I said I don’t use it but generally I have found searching here for the exact thing you want to do, will lead you to it.
Do you have their address in the “ship to” part of their customer profile? I believe that is the address it uses.
Hello there, Service.
I can see the urgency of sending an invoice or receipt to your customers in QuickBooks Online. Let me share some information on how to send the correct sales tax to the customer's specific address.
QuickBooks automatically calculates sales tax based on transaction location, ensuring accurate filings and ease of use. QuickBooks calculates the total tax rate for each sale based on various factors, such as the customer's tax-exempt status, the location of the sale and shipment, and the nature of the product being sold.
To send an invoice using the custom rates, here's how:
For more information, you can check out this link: Learn how QuickBooks Online calculates sales tax.
Moreover, you can visit this article for future reference in running sales tax reports in QuickBooks Online: Check how much sales tax you owe in QuickBooks Online.
I'm all ears to hear your reply if you have any other concerns with managing your sales taxes in QuickBooks Online. Please leave a comment below and have a good one!
I think I figured out the secret: the address has to be in the shipping address section, not the just the billing address section.While the system may choose a tax rate, you don't know if it chose correctly unless you click on "see the math" on your pc, as the name of the rate is not on the invoice. And if you are using a mobile device with the app, there is no way to know if the system chose the correct rate since the name of the rate is not on the invoice. The bottom line is that it is better to choose a rate manually for all invoices, so that you can know for sure that the correct rate is selected.
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