Sales tax in different counties

Let me share insights about the calculation of cross-county in QuickBooks Online (QBO), barefrigeration11.

This isn't the kind of situation we want you to experience. Rest assured, I’ll take note of this feedback and raise this concern with our management team. Your voice is important to us to ensure we give our users the quality service they deserve. The calculation of the sales tax amount is based on the state where you have nexus and are registered to collect sales tax when using the Automated Sales Tax feature. It also includes the physical address of your business, the product mapping you've associated with the item you're selling, sales forms, and the exemption status of your customer. 

In QuickBooks, the feature to set up sales taxes for different counties is unavailable. However, we can utilize the Custom rates option to add rates specific to that county. Doing so will give you an option to select this rate upon creating a transaction.

Moreover, regardless of the rate you have added, QuickBooks is still dependent on your customer’s location. To elaborate this further, the program automatically calculates the total tax rate for each sale based on the following criteria:

• Where you sell and where you ship
• Your customer's tax-exempt status
• What you sell

To add a custom sales tax rate, follow the steps below:

1. Go to Taxes, then Sales tax.
2. Choose Sales tax settings.
3. In the Custom Rates section, select Add Rate.
4. Select Single or Combined.
5. Enter the Name of the custom rate. If adding a combined rate, enter a Nickname for each rate you need to combine as one custom rate.
6. Click the Agency you file payments to. If adding a combined rate, select the agency for each rate you need to group as one custom rate.
7. Enter the Rate, then press Save.

You can check out this article for more details about setting up a custom tax rate for other types of taxes: Use custom rates to manually calculate taxes on invoices or receipts in QuickBooks Online.

Feel free to visit this resource for complete guidelines on how to manage your sales tax payments to handle them correctly: Manage sales tax payments in QuickBooks Online.

I'm still all ears if you need further assistance with your managing your sales taxes. Just add your reply below and I'll circle back to help you.

We have a somewhat similar problem, it really does appear that whoever they have programming sales tax workflow has no idea how real companies actually have to charge it.  We do however have three sales tax rates entered into the tax menu(taxes/settings/custom rates) and they do calculate correctly - we just can't stop the system from assuming that all sales are shipped  to the corporate office address, while  in fact 100% of our sales are actually walk-in.

Greetings!

Thanks for posting here, @kogexx. Our pleasure to assist you today.

I've seen you've made two posts in the Community with the same concern. My colleague has already provided brief information regarding your inquiry about the calculation of cross-county in QuickBooks Online (QBO).

If you haven't received the notification about the response, please check out this link to read the recommendation: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/re-the-new-invoice-provides....

Your time and effort are greatly appreciated. If you have any other concerns, please let us know. We are glad to help you. We hope you can get back to running your account soon. Have a great day!