Sales tax isn't calculating on Colorado's freight charges

We'll provide details about calculating taxes for shipping freight to Colorado inside QuickBooks Online (QBO), Suzanne410. 

The Shipping field below the Sales tax section is for manual tracking purposes of the shipping cost only. Thus, it's not taxable, or the program will not calculate sales tax for the shipping cost. You can explore the article we've provided below to learn more about how the program handles your sales taxes: Learn how QuickBooks Online calculates sales tax

In the future, if you want to include the shipping freight and compute sales tax to it, you'll want to add it as another line item inside your sales forms. Feel free to refer to these articles for further guidelines:

• Manually add service fees to invoices in QuickBooks Online
• Check how much sales tax you owe in QuickBooks Online

Feel free to visit us or comment below if you need further assistance handling sales taxes or have other QuickBooks-related concerns. We'll be around to help you again. Stay safe.

I need QBO to automatically calculate taxes on shipping amount for orders going to CO.  

QBO automatically tax shipping amount for the States that require tax on freight.  For example: GA, NJ, NC, PA, TN, WI, IN, etc.  QBO is calculating tax on the shipping amount for these States I've listed.  I need QBO to do the same for CO.

Thank you for your prompt response, Suzanne. I truly appreciate your active participation on this thread. Your insights and contributions have been invaluable as we navigate this topic together. I’ll be here to further collaborate with you on calculating taxes related to shipping in Colorado. I understand the importance of this aspect to your operations, and I’m committed to ensuring we navigate it effectively. 

As my colleague previously stated, in order to accurately reflect shipping charges in your invoices, we will need to manually input the exact shipping amount or include them as a separate service item in the Products/Service section. 

Since QuickBooks operates in accordance with the tax laws and regulations specific to each state. Some states mandate taxation on shipping fees and freight charges, while others do not. Therefore, it is crucial for us to thoroughly review the tax regulations applicable in our state and adjust our invoicing procedures accordingly.

While we navigate the complexities of state tax regulations, we will need to implement a workaround we can follow by adding a service item instead. This approach will help us manage our invoicing effectively.

I'll guide you on how: 

1. Navigate to the +New button, and then choose Invoice. 
2. Select the Customer name in the drop-down.
3. Create a line item in the Product or service section. 
4. Make a service item. Simply click the +Add new button.
   
5. Then hit Service. Enter "shipping" as the name or other relevant name, then Save and Close.
   
6. Make sure to enter an amount, check the Tax column, and then choose a taxable rate.
7. Once done, click Save and Close. 

Your understanding and comfort with this topic are my top priorities, and I’m committed to providing the guidance necessary for us to move forward confidently, Suzanne. Feel free to share any thoughts or concerns that arise, and I look forward to our continued collaboration. I’m here to help and want to ensure you feel fully supported as we navigate these important details together. 

This is a temporary solution.  My concern is I have users creating estimates and they forget about the roundabout way of taxing freight to CO.

Currently, the ability to automatically apply the correct tax on freight charges for estimates on shipments to Colorado is unavailable in QuickBooks Online (QBO), Suzanne410. We appreciate your feedback and value your contribution to enhancing our product. I’m here to guide you through the steps to submit your feedback to our engineering team.

Here's how:

1. Sign in to your QuickBooks Online account.
2. Go to the Gear icon.
3. Select Feedback.
4. Enter your feature request, then click Next.

Additionally, once a customer accepts your estimate, you can easily convert it into an invoice.

Keep in touch if you have further concerns about handling sales taxes. I'll be happy to return to this post to address your queries. Stay safe, and have a great day ahead.