The new invoicing damaged the sales tax reports, and the sales tax center shows $0 for Taxable Sales because it counts the non-taxable services. How to fix this?

mjasi · ‎June 19, 2024

We provide services that are not subject to sales tax and occasionally sell taxable hardware. However, in QuickBooks Online, all transactions are being categorized as taxable sales this month, and each report is showing a different total. For instance, the discount for nontaxable services was deducted from the taxable amount on the taxable sales summary report, resulting in a different figure from the sales tax liability report. Moreover, the discount for the nontaxable services appears on the report when it shouldn't, as it was not included in previous reports. I discovered that the issue lies with the new invoicing system, which automatically includes the sales tax box and the sales tax agency on the invoice, treating the entire amount as taxable with $0 tax collected. Although the nontaxable items are configured as such, I attempted to resolve the problem by marking the tax box on the invoice as not taxable. However, upon reopening the invoice, I realized that the "item not taxable" setting had not been saved. Is there anything else I can do?

Kevin_C · ‎June 19, 2024

Thanks for laying out the details of your concern, mjasi. Let me provide details regarding the inaccurate data showing in tax reports in QuickBooks Online (QBO).

At this time, there is an ongoing investigation into the tax report issues from taxable and non-taxable items within the program. Rest assured, our Engineering Team is aware of this and is working diligently to resolve it.

To get you in the loop on the latest updates on the issue, I encourage you to contact our Customer Care Team. This way, they can add you to the list of affected users and notify you via email of the resolution updates. You can present this investigation number (INV-101359) to our representative to speed up the process.

Log in to your QBO account.
Click the ? Help button at the top right corner.
Go to the Search tab, then select Contact Us.
Enter a brief discussion with your concern, then click Continue.
Choose a way to connect with us.

You may check out our support hours to ensure we can address your concerns promptly.

Furthermore, you can go to the Sales tax menu to file your sales return and record your tax payment in QBO. Here's an article to review what you owe first to ensure all the numbers look good: File your sales tax return and record sales tax payments in QuickBooks Online.

I appreciate your patience while we work to fix the tax report issues with your QBO account. I'm always around to assist if you have follow-up questions about this or any other QuickBooks-related concerns. Stay safe!

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The new invoicing damaged the sales tax reports, and the sales tax center shows $0 for Taxable Sales because it counts the non-taxable services. How to fix this?

The new invoicing damaged the sales tax reports, and the sales tax center shows $0 for Taxable Sales because it counts the non-taxable services. How to fix this?

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