Sales tax by location not working since they made me change to new format.

Thank you for providing a detailed explanation of the steps you've taken, @jsn80. I'm here to share some insights with you.

Location tracking is used to categorize data from different company locations, such as offices, regions, outlets, or departments. This feature allows you to view and group all payments for a specific location, but it does not apply sales tax for that location.

On the other hand, changing the address of the Location of service where you want the sales tax to be calculated is the correct approach. Just ensure to click Save before closing the How your sales tax is calculated page.

As for the address reverting to the business address, you can submit feedback for this part for our engineers to check this and decide to add it for future updates.

To send your request:

1. Go to the Gear icon.
2. Select Feedback.
3. Enter your comments or product suggestions.
4. Tap Next to submit.

As a workaround, you can set up a custom sales tax rate and manually add it to your invoices by going to the See the math section and choosing your created Custom Rates in the Sales tax rate dropdown.

Additionally, you can refer to this article about personalizing your sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.

Let us know if you have other concerns with your sales tax in QBO. We'll be here to help you in any way we can.

Thanks so much for your quick response.  I do click on "save" when I change the tax location, but the issue then becomes it then puts a "shipping" address on our invoice.  I have it set up to not show shipping, but when I change location for tax it shows shipping on invoice.  Then if I take shipping off again, it changes tax back to our address not the address of our customer.

The new invoices appear to be brain dead.  The customer's shipping address doesn't change just because it's not included on the invoice (who would have guessed?).

Thanks for coming back to this thread, jsn80. Allow me to provide some more information about how QuickBooks calculates sales tax.

QuickBooks Online automatically uses the location you've set for the sales tax location to the shipping address on the invoice because it bases its sales tax on where the item will be shipped. However, QuickBooks will also automatically use the business address as a basis for the sales tax calculation when the Ship to field is turned off. Therefore, the option to directly override the sales tax calculation in your invoices is unavailable.

As a workaround, instead of using a tax rate that's based on location, you can use a custom tax rate where you can enter the rate manually as you go.

Here's how to do it:

1. On the left navigation panel, go to Taxes.
2. On the Sales tax tab, click Sales Tax Settings.
3. Press Add rate in the Custom rates section.
4. Fill out the fields. Then, Save.

You can then set each invoice to use the custom tax rate you've just set up. Just ensure to click the Enter sales tax manually button to do so. Press Apply override and then Close.

Furthermore, I recommend sending feedback to our product developers so they can consider adding this feature in future updates.

I'll leave this article on managing your sales tax rate in QuickBooks: Edit sales tax rate in QuickBooks Online.

You can also check out the QuickBooks Blog to stay in the loop about what's new in the system.

Please feel free to come back to this post for any other concerns about sales tax in QuickBooks, jsn80. I'll be right here to assist you further.

Yes, this is work around I have found.  But I have to first figure what sales tax will be based on address of our client's property, then delete that our it puts shipping on invoice, then over ride the tax rate with the tax rate that applies to that particular client.  

  We don't ship so don't need a shipping address to show. 

The part that makes no sense, is the old form did what I needed for sales tax based on location I entered.  So it would seem the new form should be able to do the same thing just with a "new form look".

I'm having the EXACT same issue, but they keep telling me there is nothing wrong with their update.  We're a mobile business with tons of sales/service locations throughout the State of Texas, but our sales tax keeps defaulting back to our business address which is a PO Box.  We have spent hours and hours on the phone with them and they have done nothing for us.  I feel your pain.

Well at least when I was on phone with a rep today and she was using glance to view my computer screen, she agreed with me that QB would no longer do sales tax as I needed it to, so I'd just need to continue to over ride the rate.  She did tell me to submit feed back to intuit so they know it is an issue, so if you haven't submit feed back to them, which you can find under the cog wheel on the main page.  Maybe the more of us that let them know there is an issue on their end with sales tax not working as it did, they might do something to remedy it. 

I'm actually going to start looking on line to see if their is a different "book keeping" system that will work better for a service business then QB is currently.

I can't really set a custom rate for each customer I have, it doesn't look like to me.  I could have 20 invoices to send and if they are in 15 different cities they could all have a different city sales tax rate, then 5 of those 20 might be outside city limits but live in 5 different counties so have 5 different county sales tax rates.

So I don't think this would work.

Ignore the first response I sent to you, I didn't notice or read correctly that you were sending me to "taxes" to set rates there.  I thought you were sending me to bottom of invoice page where "see Math" for tax calculations are

I sent another reply addressing your advice to go to left menu and go to taxes....

Sorry I replied incorrectly first.  I've got a big headache from trying to deal with this issue since last Wednesday when I was no longer able to use my original form I'd set up.

Has there been any fix to this situation yet?  I saw another post from qb user in Texas that QB responded to and said they were working on the issue.   Thanks for any info.

This new format is terrible!! I just want it to calculate the customer shipping address and not my business address because we are a service company and collect on where services are rendered.  I tried following the instructions listed below from a QB employee but I don't think this will work for us. Does this mean I will just have to manually look up each address and make sure the tax is calculated properly for each location before the invoice goes out??  I don't feel like I can trust QuickBooks any longer.

I don't know that QB has fixed the problem.  The work around I found takes a couple of more steps but I can get it done just a pain, since it did exactly what I needed before the new format.

If you don't mind your invoice showing a shipping address as well as a billing address, just change your format to show shipping on all invoices.   Then type in customers address in the shipping and it should work, if you've set sales tax as location of sale, in your customer set up. ( I haven't actually done this as we don't want it to show a shipping address)

We didn't want our invoices to show shipping, so I have a work around that, that takes a couple of extra steps, that I can give you if you'd like.

I recognize the efficiency of calculating your customer's shipping address, Amy.

Let me chime into this thread and provide ways to help you with the sales tax calculation in QuickBooks Online (QBO).

QuickBooks automatically calculates the total sales tax rate based on where you sell and where you ship. With this, may I ask if there's a tax agency set up at that customer address? If there's none, that's the reason why it calculates based on your business address and not on your customer's shipping address.

As a workaround, I'd suggest setting up a custom tax rate. To do so, here's how:

1. Create an invoice or sales receipt. Then, go back to the steps below before you save your transaction.
2. In the Select tax rate section, select the Based on location dropdown. 
3. Choose your custom rate from the list. If you need a new custom rate, select + Add rate. Please note that you can only use one custom rate on a transaction. You can set up a combined rate first if you need to charge multiple tax rates.
4. Make sure the total tax amount is correct.
5. Click Save, or Save and send to email your customer their invoice or receipt.

Additionally, here's an article you can browse just in case you need assistance recording, adjusting, and deleting sales tax payments in the tax center: Manage sales tax payments in QuickBooks Online. 

If there's anything else you need further assistance with the sales tax calculation, keep me posted in this thread. I'll ensure to provide the best help so you can run your business smoothly.

We have the same issue.  We have several different sales tax rates.  The problem really becomes an issue when you have to "DO" sales tax.  The report is cumulative.  You have to subtract the the city from the cumulative county, THEN you get the number for the "out-of-town" addresses.  I am NOT impressed with QBO.  I would have rather stayed with desktop!

I wanted to share that I am having a similar issue with the automatic sales tax. My company provides a service at multiple locations all over Texas.QB is automatically using the tax rate where my home office is located not where the service has been performed. I've tried using the shipping address as the location of the service and that isn't working. I've made multiple calls to QB and no one can help. They suggested I look up and enter in the rate for each location...which would be for almost 100 different addresses. I hope QB finds an answer to this soon. This is update is problematic.

Thanks for sharing your experience with the automatic sales tax calculation in QuickBooks Online (QBO), Christine. I understand it can be inconvenient when the system defaults to the tax rate of your home office rather than the service location, especially when your company provides services across multiple locations in Texas.

At the moment, there's only one agency or rate available for Texas in the system. To address this, I agree with the support agent's suggestion to look up and enter the rate for each service location.

To help improve your experience with QBO, I recommend sending us feedback. Your input will go directly to our product development team for careful review and potential consideration for updates.

Here's how to submit it:

1. Navigate to the Gear icon and choose Feedback.
2. Enter your comments and suggestions.
3. Click Next.

Additionally, you can refer to the following articles to manage your sales tax more effectively:

• Learn how QuickBooks Online calculates sales tax
• Manage sales tax payments in QuickBooks Online

We're dedicated to ensuring you can seamlessly perform your business tasks in QBO. If you have any other concerns, feel free to post them here in the Community. Take care.

I am having a similar problem also.  The automated sales tax worked fine as long as we had a valid ship to address.  We discovered last week that the sales tax is not being added unless we do the drop down and select the county.  My concern is that tax won't be collected if we miss that step when we input invoices.  Something has definitely changed with a recent update.  I tripple checked and our tax rates are set up correctly.

I can't respond to the Texas problem, but definitely have the issue in Kansas.  The process of taxing by location worked just fine, BEFORE the new form was forced on us in June ( I believe, it was on a Wednesday).  I myself have sent several input suggesting to the quick book team.  I'm not exactly sure why QB can't revert at least the sales tax by location back to the process it was before the new form was forced on us.  

oops it was May not June.

This does not work either.  When you add the custom rate and click see the math, it looks correct until you save the invoice then go back in to view it.  It will default back to the business address, not the customers billing OR shipping address.  This needs to be fixed IMMEDIATLEY as it is affecting all custom billing in TEXAS.

QuickBooks calculates your sales tax based on the addresses you're shipping from and shipping to, Tammym8068. I understand the importance of fixing it immediately so you can calculate your sales taxes correctly without any issue.

We have an open investigation about the sales tax calculating incorrectly when clicking on see the math on the invoice that affects all custom billings. Our engineering team is working hard to identify the root cause and resolve it quickly.

In the meantime, contact our phone support team to be added to the list of affected users. We will send email notifications to all impacted customers as soon as the problem is resolved.

Here's how to reach out to them inside QBO:

1. Click the Help menu in the upper-right-hand corner of QBO.
2. Proceed to the Assistant or Search tab.
3. Enter "contact support" in the chat box and press Enter.
4. Select QuickBooks Online Support, then click Contact Us at the bottom of the screen.
5. Click Ask about something else, then enter a short description of your concern.
6. Choose between Have us call you or Chat.

I'm also adding these articles on how to adjust your sales tax due and file your sales tax return in QBO for future reference: 

• Create or delete a sales tax adjustment in QuickBooks Online
• File your sales tax return and record tax payment in QuickBooks Online

We appreciate your patience while we're working on this. We'll make sure to provide a solution as soon as possible. If you have any other concerns, please let me know. I want to make sure everything is taken care of for you. Take good care.

Right!  They make thigs so much more difficult and keep going up on the monthly subscription. Ridiculous!! 

Good idea, Tammy, but I can't get the agent I'm "chatting with" to listen. I included the information from your post and the direct link. But instead of adding me to the list, she's trying to connect me with Self-Employed support. It really should be a simple check box--apply tax based on business location or apply tax based on service location.

Agreed!  The crazy part is sales tax based on location of sale worked perfectly before the new form came out!!!!