Product sales tax in separate locations

gwmtreas · ‎January 01, 2024

Our non-profit uses a single QBO Advanced company file for all its activities. One of the activities is a thrift store that is a different address from the official non-profit company address. Another store in yet another location is planned. All 3 locations have their own tax rate, obviously. We created various Products in QBO that are implemented by current thrift store. Each product has sales tax enabled .The setting on each product states:

"Taxable - standard rate

We'll apply sales tax based on location only."

Questions:
1. Where is the location setting in QBO that is referenced to? Is it the "Company Address" set under Account and Settings > Company?
2. How can we introduce the 2nd thrift store with its own sales tax rates?

thanks in advance.

Rea_M · ‎January 01, 2024

Your products' sales tax setting has been set up correctly in QuickBooks Online (QBO), gwmtreas. I'll explain further how your sales taxes are calculated based on location to ensure your data is tracked accurately.

QuickBooks automatically calculates the total tax rate for each sale based on the following:

Your customer's tax-exempt status
Where you sell and where you ship
What you sell

Yes, you're correct that the location setting referred to is your company address. To introduce your second thrift store, utilize the location tracking feature and set up a custom tax rate to manually track special taxes.

Also, whenever you're ready to file your sales tax return and record your tax payment in QBO, you may want to check out this article to walk you through the process: Manage sales tax return and payments in QuickBooks Online.

Please feel free to reach out whenever you have further concerns about sales taxes and the location tracking feature in QuickBooks. The Community is always ready to help you out.

View solution in original post

Rea_M · ‎January 01, 2024

Your products' sales tax setting has been set up correctly in QuickBooks Online (QBO), gwmtreas. I'll explain further how your sales taxes are calculated based on location to ensure your data is tracked accurately.

QuickBooks automatically calculates the total tax rate for each sale based on the following:

Your customer's tax-exempt status
Where you sell and where you ship
What you sell

Yes, you're correct that the location setting referred to is your company address. To introduce your second thrift store, utilize the location tracking feature and set up a custom tax rate to manually track special taxes.

Also, whenever you're ready to file your sales tax return and record your tax payment in QBO, you may want to check out this article to walk you through the process: Manage sales tax return and payments in QuickBooks Online.

Please feel free to reach out whenever you have further concerns about sales taxes and the location tracking feature in QuickBooks. The Community is always ready to help you out.

gwmtreas · ‎January 01, 2024

Thank you @Rea_M
Thank you for explaining how sales tax is calculated, and what is meant by location. I do see that a manually-created Sales Receipt automatically has our company address in "Location of sale" field.
Unfortunately, adding another Location through all lists will be similar to adding a class - it will be mostly for reports - not calculating taxes. With this method, I can also use Classes for our locations. So, locations are unfortunately just labels.
We have thousands of transactions through Square, integrated with QBO via the "Connect to Square" app in QBO. Each Square transaction is a Sales Receipt in QBO. Unfortunately, there's no integration between Square's locations and QBO's locations. It wouldn't help anyway, due to QBO's locations not being real locations, just labels.

I am going to see if Zapier or some other integration vendor is able to take Square's location and create a sales receipt in QBO that sets proper tax rate.

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Product sales tax in separate locations