@Clark_B  DID YOU READ WHAT @sanman1  SAID!?!?!?!!? 

Let me increase the font so one can SEE WHAT THE ISSUE IS! Instead of "mansplaning" to @sanman1  how the inane tax system works.

WE ARE ALL HAVING THIS ISSUE!!! WE WANT TO TURN 

OFF BASED ON LOCATION!!!! IT OVER WRITES WHAT WE SET AS THE REAL TAX RATES FOR OUR BOOKS.  Let me reiterate

 @sanman1 's Awesome explanation of the error:

"I wanted to bring to your attention an issue we are currently facing with the automatic sales tax migration from our BigCommerce web platform. The problem lies in the fact that the sales taxes are not correctly transferring to our new system.

Specifically, every sales receipt is defaulting to the "based on location" sales tax rate, which necessitates manual adjustments for each entry. This process is not only time-consuming but also prone to errors, as we need to ensure that the state's correct sales tax rate is reflected on each receipt.

Considering the efficiency and accuracy of our financial records, this situation needs urgent attention and resolution. If a solution cannot be found promptly, we may need to explore alternative accounting applications that can facilitate the proper migration of sales tax data."

One hopes that you might grasp what we are trying to tell QUICKBOOKS- we KNOW HOW TO DO OUR TAXES- WE KNOW THE RATES WE NEED TO USE- GUESS WHAT- BASED ON LOCATION IS WRONG!!! IT DOES NOT FUNCTION CORRECTLY

PLEASE LISTEN AND REALIZE THE PROGRAM HAS A BUG AND YOU NEED TO FORWARD THIS TO THE TECHS FOR A FIX!

Hi,

I understand how it feels when QBO automatically changes the sales tax rate of the items based on location every time your transactions are imported from your third-party system. I can also imagine the inconvenience and the effort it takes to manually change the rates back to original. However, know that we are unable to turn off the "based on location" feature. Therefore, I'm inviting you to submit feedback on this matter. This way, our engineers can consider making changes in future updates.

Here's how:

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

Please don't hesitate to reach out to me if you have other tax-related concerns in QuickBooks. Your feedback is valuable, and I appreciate your understanding as we work towards improving our platform.

Thank you for your response, though it appears that it did not address the core issue. We carefully reviewed all instructions and even watched relevant YouTube videos before we set up the sales tax rate. To put it plainly, we have a straightforward question: Is it possible to migrate a sales receipt from our website's platform into QuickBooks Online (QBO) while ensuring the accurate transfer of the sales tax rate and state authority information? If we are required to manually correct 30-50 receipts every day, it indicates a significant flaw in this process that needs immediate resolution.

Before you instruct us to check the sales tax configuration from the Big Commerce platform, we already did and it states "You have Automatic Taxes turned on in QuickBooks Online. There is no need to configure any tax mappings". 

We kindly request guidance on how to facilitate this uncomplicated transfer using the "Automatic Sales Tax" feature. Furthermore, there's another matter we overlooked in our previous message – the "This customer is not tax exempt" message that appears after migrating the receipt. As an ecommerce retailer catering to individual customers, we primarily deal with customers who are "out-of-state" and "tax-exempt," constituting around 90% of our sales. If there is a solution to address this issue, we would greatly appreciate your input. However, if not, it's evident that the sales tax system is flawed in several aspects and necessitates urgent rectification. Your prompt assistance in resolving these concerns would be highly valued. 

Everyone, I hope you're well.

I'm the original creator of this post. My specific issue is related to unusual taxing for specific SKUs that can vary by state, city, and country. Below is the process I used to fix this and there's also a solution for high-volume folks.

"Fix" in QBO for Limited SKUs that are often re-used

The reason why your tax is off is because the SKU isn't matching with the tax QBO expects. QBO needs to know the exact tax amount for each SKU it is sent. If you're sending unique SKUs to QBO, this likely isn't the solution for you. Also consider that the SKU number/name and not the description is what QBO uses here. So you can create a SKU like "ABC Services" that's encompassing of all your labor charges but put the specific services in the description. That will allow QBO to assign the right tax to ABC Services while still being useful for you and the client.

• Create a unique SKU for each item and each client. For example, if you have client "ABC" and you sell them widgets, make a SKU called "ABC Widget." If you have another company called XYZ they'd have "XYZ Widget."
• Make an invoice for each client with all the SKUs. Pro-tip, start small as a proof of concept in case this doesn't work the way you want.
• Make sure you know what your taxes should be for each SKU. In Colorado, the site is here. Each state has their own page for this.
• Push the invoice to QBO. Yep, the tax is wrong. Go to every single SKU in your Product List and set the correct tax category.
• Consider either deleting all your old SKUs or putting a name like "zLegacy" in front so they can be easily sorted to the bottom of your Products list.
• Delete the invoice from your invoicing system and QBO.
• I'd consider making a new invoice with each SKU to double check. Pro-tip, if you can show your tax per-SKU on your invoice that can help you figure out if a particular SKU is off.
• I recommend a triple-check. Each time you add a new SKU remember that it's a per client change and that you need to make adjustments each time in QBO.

High Volume Companies or Variable SKUs

There is software that can effectively invoice clients the correct amount and sort of factors in the tax. Avalara is one such company that integrates well with QBO and (hopefully) your invoicing system. Effectively, you get a SKU that's for the exact tax you need for each invoice. I demo'ed it and it's good if you're volume is high enough. The downside would be if you're using QBO to accurately pay taxes too. You'll need to pull that info from Avalara instead so make sure your accountant is looking in the right place for taxes. I don't recall but I believe you just switch all your clients to tax exempt in QBO to make this solution work.

Wrap-Up

Once I understood the process I could see why QBO is struggling with this. It feels like it should work better but, unfortunately, these are our options. I hope this helps someone!

The simple answer is "no". They have no way of turning it off. I had to create some Excel sheets that I will in the data to get the correct sales tax collected in each county/city. Add a lot of time in by day but it is as close as correct as I can get it. I have been emailing QB about it for a year now and no answers. 

This feature was also not on QB Desktop so that is what is most frustrating. 

I feel that there will be a big class action lawsuit one day once someone gets audited and fails because of this feature in QBO. 

Thank you for your prompt response. It is indeed surprising that Intuit did not conduct a more thorough evaluation before releasing this "upgrade." The so-called "automatic" sales tax feature falls short of our expectations, as we find ourselves manually adjusting every receipt to comply with the appropriate tax authority on a daily basis. It is evident that Intuit may not have adequately considered the needs of online goods sellers during the development of this sales tax upgrade.

Furthermore, it appears that they have made limited efforts to address and resolve these persistent issues. A few days ago, we engaged in a discussion with one of their agents to address the problems we have been encountering. Unfortunately, the agent seemed ill-informed and unable to offer any meaningful assistance. His response left much to be desired as he suggested, "Don't you have a bookkeeper who can make the necessary adjustments?"

We hope that Intuit will pay heed to the concerns of its customers who are facing significant challenges and take steps to rectify these issues. In the meantime, it appears we will need to hire a part-time bookkeeper to manually adjust all receipts to ensure compliance with the correct taxing authorities.

Thank you, Intuit, for the unexpected expenses and inconveniences caused by this situation.

I agree with all these posts and it is creating a huge amount of additional work to manually adjust the tax rate for each invoice that is pushed. We only starting having this problem last month.

It's almost like they don't care about providing a service that helps people but are more interested in just getting more clients and money and [removed] the people who have problems, we will just run another ad and get a different user to pay.

We have run into this same issue and they have given us the useless "just manually change it" like it's not that big of an issue. 

I don't have the capability to interact with specific software or platforms in real-time, so I can't directly assist you with turning off a "Based on location" sales tax feature. However, I can provide you with general guidance on where to find such settings. I know all of this because this happens with me sometimes.

1. Account Settings:

   • Log in to the platform or software where you are managing your sales tax.
   • Look for an "Account" or "Settings" section in the main menu.

2. Sales Tax Settings:

   • Within the account settings, find a section related to sales tax or taxation.
   • Look for options related to location-based sales tax.

3. Disable Location-Based Tax:

   • Once you are in the sales tax settings, check for an option to disable or turn off the "Based on location" feature.
   • This option might be labeled differently depending on the platform, so look for terms like "Location-Based Tax" or "Geographical Tax."

4. Save Changes:

   • After making changes, be sure to save the settings to apply the updates.

5. Contact Support:

   • If you can't find the option or are unsure, consider reaching out to the platform's customer support for assistance. They should be able to guide you through the process.

Have you changed over to the AST in QBO? If you have you will notice you cannot turn it off or change it.

Has anyone found an accounting software that syncs properly from third party systems so we do not need to manually alter to the sales tax settings set properly for each client for each invoice?? 

For sales tax purposes, the state that has the right to tax the sale is the state where delivery occurs. The seller should collect the tax for the state where the property is delivered to the customer.

HOW DO WE DO THIS without having to change the tax manually for every invoice for customers with a different sales tax rate than our business address?

Thank you for joining this thread, jacque1.

It appears that you have posted a similar question in the Community. My colleague has already addressed that particular query and provided an answer. To access the completed details of the resolution, click on the following link: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/re-my-invoices-are-defaulti....

I have some resources that might come in handy. These links will guide you in determining the tax exemption status of a transaction or customer, and also assist in assigning a sales tax to different items and services:

• Understand and set up sales tax-exemptions in QuickBooks Online
• Add a sales tax category to products and services in QuickBooks Online

Don't hesitate to return to the Community if you require any further assistance with managing sales taxes or any other concerns related to our products. I'll get back to provide the assistance you need. Have a good one. 

TMcNamara

This is so discouraging: due to not even having the option to removing the "Based on location" sales tax feature.

Would be nice to see some major updates with the online system...seems to be stuck in the 80's/early 90's DOS system.

Very un-user friendly!!!

We hear your sentiments, rd.

To have this feature added to the program, we recommend sending your feedback directly to our product engineers. They are responsible for adding and changing features in the program. Please note that the number of requests also impacts how our engineers decide on changes to the program. 

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.

We appreciate your understanding and patience regarding the timeline for adding this feature.

Additionally, you can also run a report to check how much sales tax you owe. 

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

We ran into this issue and caused huge problem for my firm and client. We had to develop a custom solution that is now working to combat the "based on location" glitch. If interested, I can provide details on the solution.