Sales tax by location is not using the correct sales taxes & codes? how to turn off Sales tax by location?

I can see the importance of having a feature that will allow you to deactivate this based on location sales tax in QuickBooks Online (QBO), @cndicepatrol-gma.

I will provide you with information about the sales tax calculation. The methods used by QuickBooks to calculate your taxes are listed below. Check this out.

• Customer tax-exempt status
• Where you sell and where you ship
• What you sell

The Sales tax by location is the default setting in QBO. The state where you're based and registered to collect sales tax, your physical address, the product mapping you've put on your sales forms, and the exemption status of your client are some of the factors that go into calculating the sales tax amount. The workaround for this concern is to create a custom rate. And then manually select it when creating an invoice.

Custom tax rates can be used to make a sale.

You can use your custom rates on your next invoice or sales receipt after setting them up.

1. You should create an invoice or sales receipt. Before you save your transaction, please return to the steps below.
2. Select the Based on location dropdown in the choose tax rate section. 
3. You can choose your custom rate from the list. + Add rate if you need one.
4. Verify that the total tax amount is correct.
5. Click Save or Save and send your customer their invoice or receipt to email them.

To learn more set up a custom sales tax rate by mistake or no longer use. Check this article: Remove a custom sales tax rate.

Additionally, to determine if your transaction or customer is exempt from sales tax, and how to set up a customer or product with a tax exemption: Understand and set up sales tax exemptions in QuickBooks Online.

If you have any further queries about sales tax by location, please let me know. Comment below, and I'll answer your query. 

Can we set the default be our add rate we created. Before sales tax by location the default was 6%. We are 6% WV sales tax 99% of the time. The default always does 7%. We then need to constantly hit the drop down and change this. It is tedious and we do miss quite a few which creates accounting and sales tax reporting issues. 

We appreciate you for joining us here in the thread, @SM7010. I have some insights about setting the default sales tax rate to add the rate you created using QuickBooks Online (QBO). 

Beforehand, know that if you change the default rate, it will appear in all sales forms. You can also edit past invoices without sales tax to add the proper sales tax. If an automated sales tax is not enabled, you can set it in the edit sales tax settings. To proceed, follow the steps below:

1. In Taxes, click Sales Tax.
2. Select Edit sales tax settings in the Related Tasks Section.
3. Pick the Default sales tax to choose the tax you want to show as the default tax. 
4. You may also Mark all new customers taxable or Mark all new products and services taxable.
5. Once done, select Save.

However, if you are using automated sales tax, it is essential to turn it off before setting a default tax rate. Firstly, delete all transactions that have a sales tax, then turn it off. Here is how you can do it:

1. In Taxes, go to Sales Tax.
2. Click Sales Tax Settings.
3. Choose Turn off sales tax.
4. To confirm, hit Yes. 

On the other hand, you can run a Sales Tax Liability report using QuickBooks to know how much sales tax you owe and why you owe them. 

I'm all ears if you need further assistance with your sales tax in QBO. Just add your reply below. I'll circle back to help you.