New QBO Automatic Sales Tax Default Customers to Tax Exempt

It's nice to see you here in the Community, @CarsMetrics.

To help you set up a default sales tax for all of the customers, please refer to these steps:

1. Go to the Taxes menu and click Sales Tax.
2. From the Related Tasks field, choose Edit sales tax settings.
3. Select the Default sales tax drop-down arrow then choose the sales tax.
4. Then, choose Mark all customers taxable. 
5. Select Save.

You can also manually change the tax info on your customer's profile.

For your reference, please see this article: Set up and use automated sales tax in QuickBooks Online.

I also recommend reaching out to our Customer Care team to further investigate the root cause of the issue. To do so, please follow the steps in this link: QuickBooks Online Support. 

Then, to review those transactions under your taxable customers, you can run a tax report. Here's how:

1. Go to the Taxes menu.
2. Select Sales Tax at the top.
3. From the Related Tasks field, click View taxable customer report.

Fill me in if you have further concerns about your customer's tax status in QBO. I'll be always around to lend a hand. Take care. 

Hello!

My Sales Tax section does not have a Related Tasks part to it (I even did a Ctrl + F search for the words).

I also do not have a "Edit Sales Tax Settings" area either. I only have a "Sales Tax Settings" which only lets you change who the tax agency is or create a custom rate for taxes.

Please advise

I appreciate you for getting back, @CarsMetrics.

Allow me to join the thread and share with you some information about handling sales taxes in QuickBooks Online (QBO).

The Related Tasks and Edit Sales Tax Settings tabs are available on the old sales tax feature. For automated sales tax, you need to modify the tax settings for your customers on their profile manually. Here's how:

1. Click on Sales at the left pane, then open the customer's name under Customers.
2. Hit Edit.
3. Head over to the Tax info section.
4. Untick the box beside This customer is tax-exempt.
5. Save the changes, then do the same steps for other customers.

On the other hand, importing customers list to QuickBooks should not be defaulted to tax-exempt. To isolate the issue, I recommend checking the file or your lists before adding them to QuickBooks. You may also download the sample file as your guide in customizing your Excel columns. Here's how:
 

1. Go to the Gear icon, then tap on Import data.
2. Click on Customers.
3. Tap on the Download a sample file link to download the sample list.

To learn more about automated sales tax, you can open this article: Set up and use automated sales tax in QuickBooks Online.

Moreover, you can check out the topics from this link for more tips about handling your sales and other customer's transactions: Topics about your company's income and customers.

If you have any other questions about customer's taxes, let me know by adding a comment below. I'm more than happy to help. Have a good one!

Dear Support,

Manually changing hundreds of clients whose information was changed last year by some sort of Quickbooks update is not a reasonable option. There must be a way that Quickbooks online support can change all customers of a particular business as a one time options to taxable. An additional frustration is that when you run the report to see who needs to be changed back to taxable, and select a client to fix, when you return to the report the list of names is gone and you have to re-run the report. 

I hear your point of view, @FMC5615. 

Changing the client's information by bulk and personalizing the report is helpful if it'll be available in the program. I'll help you make everything possible in QuickBooks Online. 

Let's make this happen by providing feedback to our product engineers. Sending feature suggestions enables our creators to develop a solution to enhance your overall QuickBooks experience. 

Here's how: 

1. Go to the Gear icon on the upper right side. 
2. Select the Feedback button. 
3. Type your comments about the product and click Next. 

Many of the program's current features are available because of user feedback. Also, QuickBooks has a website where you can vote on and provide comments on any future suggestions. To access the page, visit this link: Customer Feedback for QuickBooks.

In addition, you can save your customized report by clicking the Save Customization button. This will let you apply the same formats in the future. For more information, see this link: Memorize reports in QuickBooks.

Read through these articles below on what you can do more in QuickBooks report and customer information: 

• Run reports in QuickBooks Online
• Sales and customers

If you have other suggestions or comments on the product, please post them in the comments section below. I'm willing to listen to you and help you make it all possible on QuickBooks. Keep safe, FMC5615.

100% this. I've been navigating this for years, but as someone who had previously imported thousands of customers all of which are now tax-exempt, it's infuriating. The fact that this still hasn't been fixed in 2024 is mind-blowing. 

I've heard your preferences in changing tax information for customers in bulk in QuickBooks Online (QBO), @mxjrdn.

My colleague, Angelyn_T, is correct that imported customers should not be marked as tax-exempt depending on the format of the file you moved into the application. However, if you have already verified that the file you imported to the application was mapped correctly, I recommend performing troubleshooting steps that help address unusual behavior in QBO. 

To start, we can access your company file using a private window. A private window is a helpful tool for troubleshooting browser-related difficulties as it won't preserve any history. The following are the keyboard shortcuts:

• Google Chrome: press Ctrl + Shift + N
• Mozilla Firefox: press Ctrl + Shift + P
• Safari: press Command + Shift + N

Moving forward, we can give your browser a fresh start by clearing its cookies and cache to prevent this from happening again. Other than that, using a supported browser can also be a smart choice. 

If the issue persists, it’s best to contact our Technical Support Team. Doing so will give our phone support an option to thoroughly check your account and initiate a further investigation if need be. They also have the necessary tools that can help determine the leading cause of this behavior while maintaining your privacy.

For any additional help in managing customer information, please do not hesitate to post your queries here. Simply click the Reply button, and I will be more than happy to assist you. Take care and stay safe!