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accountingboogie
Level 2

QBO - Sales taxes outside US

Hi,

I am trying to set up my sales taxes. The company is currently in California, but we have customer in Canada. QBO ask me to set up my sales taxes with an agency, but I don't have the choice to add another sales taxes agency outside of the US. Is there a way to manually add sales taxes with my own % (in that case TVQ, Quebec sales taxes)?

 

Thank you

Solved
Best answer November 10, 2020

Best Answers
Maybelle_S
QuickBooks Team

QBO - Sales taxes outside US

Hello there, @accountingboogie.

 

In QuickBooks Online (QBO) United States (US), we're unable to add agencies from other states. The list of tax agencies is only for the US. Though, you can create a new account for Canada (CA) to add a tax agency for that country.

 

To learn more and for additional reference, you may check this article: Set up and use Automated Sales Tax.

 

Find out more about the sales tax reports including the Sales Tax Liability in QBO. Scroll down to the How to Track and Pay Sales Tax: Tracking, Recording, & Reports section for more information: Sales Tax in QuickBooks Online.

 

Don't hesitate to drop a comment below if you have other questions. I'm always willing to help. Take care!

View solution in original post

9 Comments
Rubielyn_J
QuickBooks Team

QBO - Sales taxes outside US

Let me guide you on how to set up sales tax outside US jurisdictions in QuickBooks Online, @accountingboogie.

 

If you collect sales tax in multiple locations you'll need to understand how QuickBooks calculates it.

  • If you sell in multiple locations, the correct sales tax for each location needs to be calculated.
  • QuickBooks Online automatically calculates the correct sales tax for you for each location.
  • For us to calculate the correct sales tax, we need to know where you are. You'll need to make sure that your sales tax settings are correct.

To do this, I suggest consulting an accountant on how you can set up the non-us sales tax. This is to ensure that the recordings are accurate to avoid any miscalculations. 

 

The second option is to use the API. For this, I recommend posting your concern on their forum as they are the best gurus that can help you with your concern. I'd be glad to guide you how:

  1. Go to this link: https://help.developer.intuit.com/s/
  2. Select QuickBooks Online.
  3. Click Ask a Question.

You may also read these resources to learn more about sales tax in QuickBooks Online: 

Know that I'm just a post away if you have clarifications with managing sales tax in QuickBooks Online. I'm always willing to help. Have a good day.

accountingboogie
Level 2

QBO - Sales taxes outside US

Hi thank you for the quick answer.

 

My question is more, is there a way to not link sales tax to an agency and is it possible the currency is automatically in CAD or at least convert in Canadian dollar?

 

QBO doesn't let my set up sales tax without an agency (the only agencies are in the US), and legally I need to collect Quebec (Canada) sales tax when I send an invoice for my clients there. I don't mind filing manually my sales taxes, I just need it to appear at the right place in the invoice and that QB calculate the percentage I need.

MaryLandT
QuickBooks Team

QBO - Sales taxes outside US

Let me help track the Canadian sales tax, accountingboogie.

 

In order to take foreign taxes, you need turn on the Multi-currency feature in QuickBooks Online. Then, you can add the customer and choose their currency.

 

Here's how to turn on multi-currency:

 

  1. Go to Settings ⚙️.
  2. Go to Account and Settings, then go to Advanced.
  3. Select Edit ✎ to modify your currency settings.
  4. Choose the Multicurrency checkbox.
  5. Select Save and close.

Next, you need to add the CAD currency:

  1. Go back to Settings ⚙️, then Currencies.
  2. Click Add currency.
  3. Select the new currency from the Add Currency ▼ drop-down menu.
  4. Click Add.
  5. The currency you selected is added to your list of currencies.

Your last step is to add a foreign customer. If you've already added the customer, you won't be able to change the currency in their profile.  Here's how:

  1. From the left menu, select Sales.
  2. Click Customers, then New customer.
  3. In the Customer information window, fill out the needed information.
  4. Make sure to add their Canadian address for sales tax calculation.
  5. Select Payment and billing.
  6. In This customer pays me with field, select the customer's currency. This is the currency that the customer uses to pay you for products or services.
  7. Click Save.

Check out the About Multicurrency for more details about this feature in QuickBooks.

 

Stay in touch if you have follow-up questions. I'll be right here to help you.

accountingboogie
Level 2

QBO - Sales taxes outside US

I did all that already, but it is the sales tax I don't understand on how to add them without an agency since the only options are agencies in US and not Canada.

Maybelle_S
QuickBooks Team

QBO - Sales taxes outside US

Hello there, @accountingboogie.

 

In QuickBooks Online (QBO) United States (US), we're unable to add agencies from other states. The list of tax agencies is only for the US. Though, you can create a new account for Canada (CA) to add a tax agency for that country.

 

To learn more and for additional reference, you may check this article: Set up and use Automated Sales Tax.

 

Find out more about the sales tax reports including the Sales Tax Liability in QBO. Scroll down to the How to Track and Pay Sales Tax: Tracking, Recording, & Reports section for more information: Sales Tax in QuickBooks Online.

 

Don't hesitate to drop a comment below if you have other questions. I'm always willing to help. Take care!

View solution in original post

aussierocker
Level 1

QBO - Sales taxes outside US

I have a similar situation to the OP here.  When you say 'create a new account' and add a tax agency for that country,  what are the exact steps involved?  Will it enable tracking of how much tax has been collected and corresponding payments?  

Charies_M
Moderator

QBO - Sales taxes outside US

Hi there, aussierocker.

 

Creating a new account for Canada means you are to subscribe to a QuickBooks Online Canada version. Here's how to do that:

 

You can go to the QuickBooks Online (QBO) website to start a new subscription. You'll see Plans & Pricing and get to choose the version that fits your business needs.

  1. Go to QuickBooks Plans & Pricing.
  2. Click Buy Now or Start Free 30-Day Trial.
  3. Select a product (Simple StartEssentialsAdvanced or Plus).
  4. Choose Buy Now or select Try it free to subscribe.
  5. Select Already have an account? Sign in.
  6. Sign in with your previous or current user ID and password.
  7. Follow the onscreen prompts to set up a new subscription under your existing login.

You can also switch from one company file to another. Kindly refer to this article for the detailed steps: How do I switch companies?.

 

Once done, you can add a new tax agency from there. Follow the steps below for your reference:

  1. From the left menu, select Taxes.
  2. Under the Related Tasks list on the right, select Add/edit tax rates and agencies.
  3. Select New and choose either a single or a combined tax rate.
  4. Enter a name for the tax, the agency you pay, and the percentage for the rate. ...
  5. Click Save.

Regarding your question about the ability to rack of how much tax has been collected and corresponding payments, the answer is yes.

 

Learn more about the things you need to do with your new company by visiting this article specifically made for QBO Canada: Learn QuickBooks basics and get set up for success.

 

Feel free to go back to this thread if you need anything else while working with sales taxes. Have a good one.

Billi3665
Level 1

QBO - Sales taxes outside US

Are we able to add CUSTOM TAX? I was able to add CUSTOM TAX code if I put my location to Canada or outside of US, but when I did it for account in the US it still give me Base on location. Is there something that is preventing Custom tax code from been created in the US?

MaryJoyD
QuickBooks Team

QBO - Sales taxes outside US

I can show you how to set a custom tax rate, @Billi3665.

 

You can go to the Sales tax settings to set up custom tax rates. Then, when you make a sale you can add them on your invoice or sales receipt

 

  1. Go to Taxes menu and then Sales tax.
  2. Click on Sales tax settings and in the Custom rates section, select Add rate.
  3. Choose Single or Combined and then pick the Agency you file payments to.
  4. Enter the Rate, then Save.

 

For more information on how to add a rate and use it when you make a sale, refer to this article: Use custom rates to manually calculate taxes on invoices or receipts.

 

To review what you owe from time to time, you can run the Sales Tax Liability report to view your sales tax information. 

 

I'm always here if you need more help with your sales tax by leaving a reply below. Take care and have a great rest of the day!

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