cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

In the new automated sales tax center how am I supposed to fix incorrect tax rates?

 
5 Comments
Highlighted
QuickBooks Team

In the new automated sales tax center how am I supposed to fix incorrect tax rates?

Let me help you correct your tax rates in QuickBooks, @bjboyle2018.

 

The way QuickBooks calculate sales tax is based on the tax agency that you've set up in the system. I can show you the steps on how to correct your tax agency to correct your tax rates. Here's how:

 

  1. Go to the Taxes menu and click Tell us where you collect tax.
  2. Select the correct tax agency. 
  3. If the agency is incorrect, click Add agency and add the correct agency.

 

You can also make inactive your incorrect tax agency. Simply, click the drop-down arrow under the ACTION column and select Make inactive. Then, click Make inactive once again.

 

I've also added an article to learn more about how QuickBooks Online calculates sales tax: How QuickBooks calculates the correct tax rate on each sale.

 

Feel free to go back to this thread if you need anything else.

Highlighted
Level 1

In the new automated sales tax center how am I supposed to fix incorrect tax rates?

Raymond,

Thanks for replying. Actually the tax rate is for my physical location. My address is correct but Quickbooks wants me to collect city taxes. We are unincorporated and therefore do not pay city taxes. What then is the solution for this incorrect tax rate?

Highlighted
Moderator

In the new automated sales tax center how am I supposed to fix incorrect tax rates?

Hello @bjboyle2018,

 

You'll want to contact your state tax agency to confirm the rates of the sales tax you need to collect. In the meantime, you can override the sales tax rate of your invoices and manually enter the rate.

  1. On the Sales tax section of your invoices, click See the math.
  2. Under Tax Categories and Totals, select Override this amount.
  3. Enter the rate and amount of sales tax.
  4. Select Close.
  5. Click Save and close.

I'm adding a few references here for ideas about overriding the sales tax of your transactions and filing your tax return.

 

I'll be here if you need more help. Thanks!

Highlighted
Level 1

In the new automated sales tax center how am I supposed to fix incorrect tax rates?

Thanks for the reply 

Highlighted
Moderator

In the new automated sales tax center how am I supposed to fix incorrect tax rates?

I support your position here, @bjboyle2018.

 

Manually entering the correct taxes per transaction can be a tedious process if you have a lot of transactions. Letting us know what works for you will show our developers what they need to consider in future product updates. I'll be sure to pass this idea to them.

 

Additionally, reverting to the manual sales tax center isn't available if you're already using the new automated sales tax center. 

 

For other references you may need in the future, you can checkout the following links below.

I'll be around to help however I can if you have other questions or concerns. Take care and have a good one.

Need to get in touch?

Contact us