How To Update Sales Tax Account Mapping?

Hi there, @MattCE. 

I want to make sure we're on the same page for us to achieve your goal for today which is to update sales tax account mapping in QuickBooks Online.

It is possible that you entered the wrong tax rate in sales forms since QuickBooks has automatic accounts payable for each tax agency. The best we can do is to review those sales forms in question under the NH Department of Revenue Payable, then make sure that the tax is not under the NH Department of Revenue Payable it should be under Vermont so that QuickBooks will automatically move those amounts to Vermont Department of Taxes Payable.

The best course of action that we can take is to manually edit the transactions with the wrong tax rate forms. Let me walk you through on how to:

1. At the left navigation panel click on Chart of Accounts
2. From the magnifying glass icon search on New Hampshire Department of Revenue Administration Payable
3. Double-click on the tile 
4. Select Edit and click on Select tax rate
5. Choose Vermont Department of Taxes and Save

I'd also recommend checking out these articles for your reference on how to handle your sales tax in QuickBooks Online:

• Set up your sales tax in QuickBooks Online
• Set up and use automated sales tax in QuickBooks Online
• Set up where you collect sales tax in QuickBooks Online

Leave a reply if you need help assistance, or clarification with handling Sales tax in QuickBooks Online. Have a great day!

Hello Shania,

It's our company that is having this issue. We rent our product in 3 states and the 3 general ledger accounts for Sales Tax Payables, the Sales Tax codes and State Tax Agencies for all three states were set up correctly in 2020 and have worked without issue posting to the correct general ledger accounts for all this time up until February 2024.  We invoice our NH customers with a Non Sales Tax code of 0% because there isn't any sales tax in the entire state of New Hampshire.  All our NH invoices have posted to the correct NH GL sales tax payable and continue to do so correctly.  We invoice our MA customers with a sales tax of 6.25% and they have all posted to the correct MA GL sales tax payable account.  Then all of a sudden for February all VT invoices started to show up in the NH GL sales tax payable account.  As we have 11 different Vermont sales tax codes due to tax variations with certain towns, it's not a small issue for us.  We did not change anything within our Automated Sales Tax screen for Vermont from January to February.   We first noticed issues back in late 2023 that the Detail Type on these 3 liability accounts changed from Sales Tax Payable to Global Tax Payable through programming changes initiated by QuickBooks.  Not sure why they did this but it happened. Is your solution for me to change the name of my NH Sales Tax Payable GL account over to VT Sales Tax Payable?  

Hello Shania,
It's our company that is having this issue. We rent our product in 3 states and the 3 general ledger accounts for Sales Tax Payables and Sales Tax codes for all three states were set up correctly in 2020 and have worked without issue posting to the correct general ledger accounts for all this time up until February 2024. We invoice our NH customers with a Non Sales Tax code of 0% because there isn't any sales tax in the entire state of New Hampshire. All our NH invoices have posted to the correct NH GL sales tax payable and continue to do so correctly. We invoice our MA customers with a sales tax of 6.25% and they have all posted to the correct MA GL sales tax payable account. Then all of a sudden for February all VT invoices started to show up in the NH GL sales tax payable account. As we have 11 different Vermont sales tax codes due to tax variations with certain towns, it's not a small issue for us. We did not change anything within our Automated Sales Tax screen for Vermont from January to February. We first noticed issues back in late 2023 that the Detail Type on these 3 liability accounts changed from Sales Tax Payable to Global Tax Payable through programming changes initiated by QuickBooks. Not sure why they did this, but it happened. Is your solution for me to change the name of my NH Sales Tax Payable GL account over to VT Sales Tax Payable?

Hi there, @NHRiverGal.

Upon checking on our end, there’s currently an ongoing investigation regarding the mapping of the wrong state tax liability in QuickBooks Online.

Furthermore, changing the name of your NH Sales Tax Payable GL account over to VT Sales Tax Payable is not needed. I recommend contacting our support team again to learn more about the status of the current investigation. You’ll be then added to the list of affected users and will receive updates via email.

To contact our support team:

1. Log in to your QBO account.
2. Click on Help (?) at the upper right corner of your screen.
3. Tap on Search, then select Contact Us.
4. Select a topic to connect with the right expert.
5. Choose how would you like to contact with QB support team.

• Via a Callback, where they’ll save you a spot and call you back.
• Via Chat, start a chat with our support.

Moreover, if you want to know how to record your sales tax payment, check this article out: Manage sales tax payments in QuickBooks Online.

Feel free to leave a comment below if you have more questions about managing your sales tax in QBO. I’ll be here to assist you at any time.