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Good day, kavita444.
QuickBooks Online calculates the correct tax rate on each sale based on the following:
Let's check your customer's tax status. This might be one of the reasons why the sales tax isn't calculating.
Here's how:
Here's a sample screenshot for a visual guide:
To determine if your sale is exempt from tax, you can read this article: Conducting non-taxable sales.
For checking the product/service tax category, you can follow these steps:
After the steps above, try to create the transaction and check to see the sales tax information.
I'm adding these articles for more information:
Please feel free to leave a comment on this thread if you have more questions or other concerns. I'll be right here to help you out. Take care!
Try creating invoices within QB to check if they calculate taxes. If yes, then the issue is in the third-party app. If no, the issue is in QB.
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