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Community Contributor *

Set up Multiple Sales Tax

I am trying to set up multiple sales tax rates in QB online and I have plowed through all of the tutorials and answered questions here and the directions they are giving me can not be done. I have Small Business Essentials online edition. I'm wondering to I need to upgrade to the "Plus" edition in order to do this.
Under my customers tax tab there is only a place to click for tax exempt. I am cash basis. Also under my sales tax liability report they have my sales tax under 3 different reporting agencies which is incorrect (all for one state).
Any suggestions?
Thanks.

6 Comments
QuickBooks Team

Re: Set up Multiple Sales Tax

Hello there, @JQ21,

 

Using the Automated Sales Tax, you can only set up one sales tax rate regardless of the QBO version you are using.

 

If you need to add another agency:

  1. From the left menu, select Taxes.
  2. On your Sales tax page, click Sales tax settings.
  3. Click Add agency.  addagency.PNG
  4. Select the Agency from the drop-down list.
  5. Select the Filing frequency from the drop-down list.
  6. Enter the Start Date of your tax period. 
  7. Click Savesetupsalestax.PNG

For additional guidance with the steps above, you can read through this link: Sales tax in QuickBooks Online.

 

About the customer tab, are you trying to exempt your customer from paying sales tax? I'd appreciate if you can provide more details so I can give you the exact information you need.

 

On the Sales Tax Liability report, please see the attached screenshots below if your seeing 3 sales tax rate like this. threeagency.PNG

 

What you can do is click the tax amount so you can bring up the transaction. Then, click Sales tax to see the tax agency and standard rate based on where you sold your items. salestaxreport1.PNG

 

QuickBooks Online calculates your sales tax based on the following information:

  • The physical address of your business.
  • The physical address on the sales receipt or invoice.
  • The product mapping on your products or services you're selling.
  • The exemption status of your customer.
  • The sate where you have nexus and are registered to collect the sales tax.

Please check this out for more details: Sales tax in QuickBooks Online.

 

If you need anything else, please let me know and I'll get back to you.

Community Contributor *

Re: Set up Multiple Sales Tax

Thanks MarylandT for the quick response. 

Our multiple tax rates are within the same state and there is only one tax agency available on the drop down list.  We do work in different "counties" that have different tax rates and they must be taxed at their rate, so I would be adding the same tax agency to the list. 

 

The sales tax does not change based on the address of the invoice.  I have to override the tax rate every time I do an invoice that has a different tax rate. A couple of times after I have logged out of QB and gotten back in I was double checking my figures and on the invoices that I had to override the tax rate,  somehow it reverted it back to the original tax rate that I have set up.  (does that make sense? ) 

 

When I tried to add a combined tax rate as listed below from the QB tutorial when I select TAXES from the left menu there is no RELATED TASKS list on the right and when I tried to "add tax rate agencies" it does not ask me to choose COMBINED TAX RATE and I can't complete the following steps.  This is where I'm having my problem.

 

To add a combined tax rate: 

  1. From the left menu, select Taxes.
  2. Under the Related Tasks list on the right, choose Add/edit tax rates and agencies.
  3. Select New, then choose Combined tax rate.
  4. Enter a name for the combined rate and the different sales tax requirements.
  5. (Optional) Choose additional components.
  6. Select Save.

 

The desktop version is so much more accommodating to these issues.  I know there has to be a way that I do not have to override the tax rate every time I do an invoice.  

QuickBooks Team

Re: Set up Multiple Sales Tax

Hi there, JQ21.

 

The steps you've taken above was for the old sales tax interface. For now, you'll have to override the tax rate every time you create an invoice. 

 

I'll make sure to pass your suggestion to our Product Development Team since they're the ones who update QuickBooks. If there are a lot of customers who request for this feature, it might be added in the future. 

 

For other questions or concerns, feel free to visit us at any time. Thanks.

Community Contributor *

Re: Set up Multiple Sales Tax

Yes we do need the same option in the online version as we do in the desktop version for the multiple sales tax rates.  

Not applicable

Re: Set up Multiple Sales Tax

I am also running into an issue within my delivery-based taxing state, and an easy drop down menu of the literally 2 dozen+ tax rates I now have to assign to my invoices based upon their end destination, would be helpful beyond belief.

QuickBooks Team

Re: Set up Multiple Sales Tax

Thanks for joining us here, babybird.

 

It's possible that you're still using the old sales tax interface. The updated sales tax function will no longer ask you to select a sales tax because QBO will automatically assign it based on the customer's location. 

 

You can go to the Taxes menu to migrate to Automated Sales Tax. Once on the Tax Center, just click the Make the switch button and follow the succeeding prompts to complete the migration. Let me share this article for additional info: Switch to Automated Sales Tax.

 

I'll be here if you need anything else. 

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