Automated Sales Tax feature in QuickBooks Online (QBO) automatically calculates tax rates based on your location, the customer's address, the product or service you're selling, and whether the customer is tax-exempt, Cheryl.
To ensure sales tax is calculated correctly for your invoices or transactions, start by checking your customer’s sales tax status in QBO to determine whether they qualify as tax-exempt, such as churches or nonprofit organizations. Additionally, review the products or services listed in your transaction to confirm they are categorized correctly as taxable or non-taxable items, as this directly affects how sales tax is applied.
Once done, we can then double-check the customer’s billing and shipping addresses for accuracy, as sales tax rates are determined based on location. Ensuring that all the entered information is correct helps QuickBooks Online calculate and apply the appropriate sales tax for each transaction.
I'll share this article for further details for further information regarding how Automated sales tax rolls in QBO: Set up and use automated sales tax in QuickBooks Online.
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