QuickBooks is simplifying how you track your sales tax returns, Richard. I’ll provide a clear explanation of the tax changes occurring in your QuickBooks Online (QBO) account.
QuickBooks automatically calculates sales tax based on the products you sell and the locations where you sell them, including shipping destinations. If there are changes to the tax laws in your state, such as adjustments to sales tax rates, QuickBooks updates these rates automatically to ensure compliance and accurate financial reporting.
If you notice a change in your sales or purchase tax rates, it's likely due to such legal updates. Although QuickBooks handles these adjustments, it's wise to confirm with official tax authorities or consult a tax professional if you have specific questions or concerns.
Additionally, if you prefer a fixed rate, QuickBooks allows you to create a custom tax rate. However, consulting a tax advisor is recommended for precise financial reporting.
If you no longer need or use a specific tax rate, you can deactivate it. For more details about this process, please refer to this article: Deactivate a tax rate.
I'm here to help you manage your sales taxes effectively. If you need additional assistance or have any questions, please don’t hesitate to click the Reply button below, and I'll respond promptly. Take care and stay safe.
