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TPP-DEV
Level 1

QBO - Create invoice with different taxes per line item

In my county we have different taxes for Food vs Alcohol.

Food == Tax1

Alcohol == Tax1 + Tax2

 

I have uploaded invoice.

 

AST calculating wrong taxes and not adding any county tax at all.

How can I create this invoice in Quick books Online.

 

 

 

2 Comments 2
Rea_M
Moderator

QBO - Create invoice with different taxes per line item

Hello there, TPP-DEV. We'll provide a few insights about how sales taxes are calculated in QuickBooks Online (QBO) and encourage you to send feedback or product recommendations to help improve the features and your experience with the platform.

 

QuickBooks automatically calculates the total tax rate for each sale based on your location, customer's tax status, where you sell and ship, and what you sell. However, you can only use one tax code per invoice and not the per line item. For now, you may want to manually include sales taxadd tax codes as items, or override them on your sales transactions.

 

On the other hand, we put a value on our customers’ voices and consider them when enhancing the product. Let me help and guide you on how to send your ideas straight to our product engineers.

 

  1. Go to the Gear icon.
  2. Select Feedback.
  3. Type in your recommendation in the Share your feedback field.
  4. Click Next.
  5. Follow the on-screen instructions to complete the process. 

 

Additionally, whenever you're ready to file your sales tax return and record your payment in QBO, you may find this article handy to guide you through the complete process: Manage sales tax payments in QuickBooks Online.

 

Feel free to visit us anytime if you need further assistance managing invoices and other sales transactions in QBO. As always, the Community team will be around to help you out again. Keep safe.

TPP-DEV
Level 1

QBO - Create invoice with different taxes per line item

Thank you for your reply.  But none of the solution (work around) is working for me.

1) Having custom tax rate (10%) : 

         In this case custom tax rate applies to entire subtotal of $700.

         But in my case I want 6% tax on $700 and 4% tax on only $100.

2) Add sales tax code as line item :

        Can you create sales tax item as product or service?  I couldn't find a way to do it.

        If I just create a tax code item as product then there is 0 tax liability in my tax liability report.

3) Tax override :

        Tax liability getting messed up for tax agency.

 

Here is the video link : https://drive.google.com/file/d/1oNemLU1abs7JkiW-J-jhhpIg3GeyjOhs/view?usp=drive_link

 

My suggestion would be having tax code (group) per line item.  Just like Quick books desktop Canadian version.

That would solve all the issues.

 

Thanks,

 

 

 

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