"Can't calculate sales tax" Notification keeps popping up

I recognize the importance of efficiently managing your sales tax, PB38. Let me elaborate on why you're getting that notification.

Tax-exempt rules vary, which means that it's not the same everywhere. QuickBooks takes care of this by ensuring that it follows the correct tax-exempt rules based on what you sell and the address of your customer. Additionally, if you mark a product or service as taxable, it will automatically calculate the sales tax, even if your customer is tax-exempt.

Here's how you can check if the product/service is taxable or tax-exempt:

1. Go to the Sales tab and choose Product and Services.
2. Find the product or service you want to check.
3. Scroll down to the Sales Tax section. If the product is tax-exempt, the Taxable box should be unchecked, but if it's taxable, it should be ticked.
   
   
   

You can also run a customer list report to verify which customers are taxable and nontaxable.

I'm always here to offer assistance, PB38. Feel free to add a comment below if you have other questions about managing sales tax in QBO.

Thank you for your help but what about when I do want tax added for those products for the accounts that aren't tax exempt?

Let me help you how to get this done, @PB38

There are two ways to approach this, depending on whether you want to make a customer or an item taxable. If you want to make a customer taxable, you can easily do so by unchecking the This customer is tax exempt box in their profile setup. Here's how:

1. Hover over to the Sales tab and click on Customers.
2. Find the customer's name and click on it.
3.  Click on the Edit button in the upper left corner of the screen.
4.  Uncheck the This customer is tax exempt box.

On the other hand, if you want to make an item taxable, you can do so by checking the Tax box when creating an invoice. Here's how:

1. Click + New and select Invoice.
2. Choose a customer from the dropdown list and make sure all of their details are correct.
3. Review the Invoice date, Due date, and Terms. If necessary, enter new dates or terms.
4. Select a product or service from the dropdown list.
5. Check the Tax box.

For your future reference, you can check out this article to learn how to set up, edit, and deactivate your sales tax rate and settings in QuickBooks Online (QBO): Set up your sales tax in QuickBooks Online

If you have further questions about managing sales tax in QBO, please don't hesitate to reach out to us anytime. We'll be here to help. Keep safe.

I think the answerer may be missing the OP's point. At least for me, and it sounds like for them too, sales tax is already set up the way I want it for customers and items but QBO keeps nagging me that it can't calculate tax (even though it does). I have to go up and close this nag every single time anyway. Is there a way to make this nag 'Don't ask me again'?

This is the one I constantly get.

Hi there, hockfiresaws. 

I recognize the importance of calculating the correct and accurate sales tax on invoices. Let me guide you to remove the prompts that hinder you from getting your sales tax calculated.

QuickBooks relies on the customer information you've entered to perform tasks such as calculating sales taxes. Since you've received a prompt to double-check the information, it's likely because the program was unable to validate the shipping address you entered. Thus, I recommend correcting this data for an accurate sales tax calculation. 

Here are the steps you can follow to make the necessary changes:

1. Click the Shipping address hyperlink within the prompt.
2. In the Location and addresses, tap Edit.
3. Enter the correct information in the fields provided.
4. Once done, hit Save, then Close.

Alternatively, you may edit the address directly to your customer profile by tapping the Edit customer button in the invoice.

If you haven't set up a tax agency for the address you've previously added, you can click the Set up new sales tax agency hyperlink within the prompt. 

In addition, you may want to run a Sales Tax Liability report to check how much taxes you owe. You can also personalize this report by referring to this article: Customize reports in QuickBooks Online.

Keep me posted if you have any other concerns about managing your sales tax in QuickBooks. I'm just around the corner to help. Have a good one!

I appreciate that but again, missing the point. I have everything already set up how I need it. In my example case it was a walk-in customer. There is no shipping address. 99% of my customers are buying at my location. Customers are either tax exempt or they're not. If they're not then they pay sales tax based on MY location, MY county, MY state. I don't care where they live and I'm sick and tired of having to go up and close that ridiculous little banner that thinks it knows better. 

I have the same issue, and yes, I believe the one answering is missing the point. It's not an issue of how to set up sales tax, as I think you are aware of that. Because marking a product as tax exempt is not an option. For me, I can't mark one of the customers I have as tax exempt either, because some of the sales are taxable that are shipped to their locations in my home state. On my issue, there used to be an "out of scope" tax rate that could be configured for all areas that did not have a tax agency set up. I do not find that option anywhere now.

I understand how hard it must be for you, @hockfiresaws. Let me provide some insights on how to remove the prompts that are hindering you from calculating your sales tax.

If the customer is tax-exempt and the tax box is not checked on the invoice, the banner or prompt to double-check the information will not appear. However, since you've mentioned that your customer has no shipping address, you can remove or edit this in the invoice settings.

Here's how:

1. Go to your Invoice, and click the small gear icon or Manage.
2. Click Customization and Untick the Ship to.

In addition, check this article to guide you on how to use the sales tax liability report to calculate the amount of sales tax you owe: Sales Tax Liability report

Return to this thread if there's anything else I can help you with managing your sales tax in QuickBooks. I'll be here to help you in any way I can, @hockfiresaws.

Ah, I think we're getting closer now I'm having my issue with Sales Receipts rather than Invoices but I think maybe turning off the Shipping field will work here too. Unfortunately, unlike Invoices, the gear icon in Sales Receipts does not offer the option to uncheck Shipping. I did however uncheck that option under Invoices and the Shipping to field disappeared on Sales Receipts as well. Thanks much! Time will tell if the nag banner is muted.

I have this exact same problem.  Numerous calls and chats with QB produced no resolution, it is programming error they refuse to fix.  Your only solution is switch to Xero. 

You are a flaming [Removed] just like everyone who works at QB.  
We already did that. 

This is a stupid response because this does not fix the issue. QBO used to not have this problem and it worked fine. This issue you are suggesting, as everyone else at QBO suggests, is not a solution at all because this makes all customers get the home state tax charges, which is not what we are wanting. 

I see the importance of getting accurate sales tax on invoices and utilizing out of scope option.

Let's send this suggestion to our Product Development team by following the steps below. Include your suggestions/insights about adding more characters to the customer account. Here's how:

1. Go to the Gear icon.
2. Select Feedback under Profile.
3. Enter your suggestion. Then, click Next.

To learn more about managing income and sales transactions, always feel free to utilize these resources:

• Topics about your company's income and customers.
• Invoices and payments.

Let me know if you have more concerns about changing details from the settings and managing sales forms in QuickBooks. I'm here whenever you need help. 

"Feedback" does not work either. 
A couple of your reps have suggested turning off sales tax. 
Since that is illegal I have reported Intuit to California Department of Tax and Fee administration for broken software that does not collect sales tax.