I have just logged in after a long stint away from my QuickBooks. I have found that the sales tax on invoices is calculating to MY business address instead of my client's address (which in many cases is a different county than where I need it to calculate). This is a new problem for me as it has not been an issue before. We do NOT have a store front and are a mobile business. Our accountant has clearly indicated that we must charge tax where we are completing our mobile service for our clients.
I'm stuck on late on a Saturday night with no idea what to do. I normally call a representative for QB and stay on the phone with them for an hour to figure things out if I can't find answer for myself. Please provide guidance if you know what to do! Thank you!
As far as I know the sales tax is calculated automatically (I cannot seem to find where to change the settings anyway). I have not calculated it for each invoice in the past and it is calculating to my business address now on its own. I haven't used shipping addresses for my clients in the past either since I do not ship anything, I take everything I sell directly to my clients (we are completely mobile and have no store front). I haven't changed any of the settings in QB and it has always calculated to my client's addresses for sales tax purposes. I went about entering everything on the invoice as I normally do and got a different result.
It only calculates sales tax using accrual basis, so if your state allows for cash basis sales tax reporting ....
Auto sales tax has a "flow" of default operations, it is designed to do destination based sales tax, so first it looks at the shipping address, if there that is location (zip code) it uses for sales tax. If the shipping address is blank, it defaults to the company address zip code.
Auto Tax in QB has messed up my billing. Every customer across the country is being charged NY State sales tax, even after the shipping address has been matched to the billing address correctly. The recurring templates are accurate, but when they process, NYS sales tax is added to every template. I have no idea how to explain to customers, or how to fix this in the system.
Let's check out why your customers are being charged to New York State sales tax, Nooptee.
Aside from considering the Billing and Shipping addresses, please note that the Automated Sales Tax will also take into account the following factors:
The state where you have nexus and are registered to collect sales tax.
The business's physical address.
The product mapping you've associated with the products or services you are selling.
The customer's exemption status.
Therefore, even if your invoices don’t have a New York address, but your company is required to collect NY State tax, it’s added to your transactions. You may want to consult your accountant, or you can contact your sales agency to verify the NY tax on your invoices.
Keep me posted if you need anything else with sales tax calculation. Just hit the Reply button below and I'll be sure to answer them.