I tried to turn off Sales Tax, I got this: "Sorry. We see you've collected sales tax on 1 or more items. This means you can't turn off sales tax" How do I find the items?

I'm here to shares some details about the error that you've encountered, garrison5734. 

After you activated the automatic sales tax, you're unable to turn it off in QuickBooks Online. Though, you can edit the customer's tax information to ensure you will not collect any taxes. I'll guide you how.

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

The tax rate will no longer apply every time you create an invoice for this customer

Additionally, I've added an article that'll help you to file your sales tax return and record your tax payment in QuickBooks Online. To learn more about the process, please click here. 

If there's anything else that I can help you with, please don't hesitate to leave a comment below. I'll always look forward to helping you out.

@garrison5734 

You may explore this AST Filing & Reporting app to find any useful info.

https:// taxjar.grsm.io/mytax

Unless I am misunderstanding, this is a serious and ongoing issue in certain use cases.

I turned on sales tax in a misguided attempt to get Square payments to work with QBO. That was a complete dud, and I now have to enter those payments in multiple steps each.

But now, for EVERY new customer I invoice, I have to follow multiple steps to get rid of sales tax that I never wanted or needed in the first place. Nearly every one of my customers is a single example, a new customer. And not a single one needs sales tax to be collected.

How is it possible that this is a one-way door? Once the setting is changed, it can never be undone? Am I to face this burden for every new invoice, every new customer, every day and every week?

As I said, maybe I misunderstood the answer. But so far I am having to take additional steps for every single invoice I create. Please tell me this is being addressed. Or please tell me how to set the local tax rate to 0%. 

Thank you.

Unless I am misunderstanding, this is a serious and ongoing issue in certain use cases.

I turned on sales tax in a misguided attempt to get Square payments to work with QBO. That was a complete dud, and I now have to enter those payments in multiple steps each.

But now, for EVERY new customer I invoice, I have to follow multiple steps to get rid of sales tax that I never wanted or needed in the first place. Nearly every one of my customers is a single example, a new customer. And not a single one needs sales tax to be collected.

How is it possible that this is a one-way door? Once the setting is changed, it can never be undone? Am I to face this burden for every new invoice, every new customer, every day and every week?

As I said, maybe I misunderstood the answer. But so far I am having to take additional steps for every single invoice I create. Please tell me this is being addressed. Or please tell me how to set the local tax rate to 0%. 

Thank you.

I understand the hassle that this caused you, @sawxray. 

As of now, there isn't a way to switch back to the manual sales tax once you're using an automated sales tax. I know that having accurate calculations in local taxes will give so much advantage to your business. That said, I'd suggest sending feedback requests to our engineers so they can consider this feature again.

Let me guide you on how to do that:

1. Click the Gear icon.
2. Select Feedback.
3. Enter your feedback and suggestions.
4. Click Next.
5. Select Feedback for the Category.
6. Click Send a message.

In the meantime, I recommend visiting our Firm of the Future site. This is where we share recent happenings and future developments, such as updates to newly added features.

Moreover, you can use the override option when you create an invoice for your customer as a workaround. This is to ignore the automated calculation.

Here's how:

1. Open the transaction (invoice/sales receipt).
2. Click the Sales tax link in the lower right-hand corner.
3. Below the Total sales tax amount, click the Override this amount link.
4. Enter the Rate, Amount, and Reason.
5. Click Confirm override.

For more details, you can check out this article: Override sales tax on transactions.

To make sure everything is accurate with your custom tax rate before you file your return to your tax agency, you can run the  Sales Tax Liability report.

I'll be adding our resource page, so you'll be familiar with how QuickBooks manage your taxes:

• Learn how QuickBooks Online calculates sales tax
• Sales Tax Resource Page.

Reach out to me if you have additional inquiries about Sales Tax or any QuickBooks related. I want to make sure you're taken care of. 

Same issue, yikes their advice was to submit a ticket to support. Really suboptimal system, I can't turn off tax because it's already on? Goofy.

Still the same problem.  I rent apartments and there is no sales tax but I can't get rid of it.  Quickbooks needs to fix this problem.

We appreciate you reaching out to us in the Community, Baltapts. I'm glad to assist you with turning off sales tax in QuickBooks Online (QBO).

Before turning off the sales tax setting, it's necessary to delete any transactions that have sales tax. Here’s how:

1. Go to Reports.
2. In the Find report by name field, enter Sales Tax Liability Report. Then, select the report.
3. In the Report period ▼ dropdown, select All Dates. Then, select Run report.
4. In the Taxable Amount column, select the amount to see the transaction report. This will show all transactions that have sales tax.
5. In the Transaction Type column, select the transaction. Ensure to take note of all the details of the transactions.
6. Press More. Then, click Delete. Please note that you can still view deleted transactions in the Audit Log.
7. Select Yes.

Once done, follow the instructions below to turn off the automated sales tax experience:

1. Go to Taxes, then choose Sales tax.
2. Select Sales Tax Settings, then click Turn off sales tax.
3. Hit Yes to confirm.

If you still have the manual sales tax experience, you can turn it off by following these steps:

1. Go to Taxes, then choose Sales tax.
2. Select Do it later if you see the new sales tax experience option.
3. Under Related Tasks, select Edit sales tax settings.
4. Under Do you charge sales tax?, click No if you don't charge sales tax.
5. Then hit Save.

For a comprehensive understanding of the process, I recommend referring to this article: Turn off sales tax in QuickBooks Online.

Furthermore, you may check out this article for a comprehensive walkthrough on how to recover and re-enter the details of the deleted transaction: Use the audit log to re-enter deleted transactions in QuickBooks Online.

If you have additional questions about sales tax-related concerns in QuickBooks Online, please don't hesitate to share them with me. I'm here to help. Have a productive day!

I am having the same issue and it's frankly infuriating. AST has brought my business to a complete standstill and is preventing my inventory system from integrating. I did everything listed in this post and show nothing in my tax liability report, yet it still won't let me turn off sales tax! So incredibly disappointed in Intuit for this move... Guess it's time to foot the bill for NetSuite

I am having the same issue and it's frankly infuriating. AST has brought my business to a complete standstill and is preventing my inventory system from integrating. I did everything listed in this post and show nothing in my tax liability report, yet it still won't let me turn off sales tax! So incredibly disappointed in Intuit for this move... Guess it's time to foot the bill for NetSuite

Sorry, but this is not a fix.  I have multiple years of this problem and you can't change transactions in previous years, not to mention the many hours it would take to do this, time that I don't have.