I noticed that QBO is not calculating sales tax for items correctly.
Items are all set up as non-taxable. This is because I only collect sales tax in certain states. So, at the invoice level I mark items as taxable that I need to. Always worked fine in the past up until Q1 of 2025.
On invoices where I collect sales tax, I mark the line item as taxable. For some items, it includes it on the calculation. For other items it does not. There is no difference in the setup for each of these items.
I would expect that when I check "Taxable" on the invoice that the item would be taxed, whether it's an item, discount, etc. But it's not.
This was working fine. I only found it now because I was reporting my quarterly sales tax and noticed that it was all wrong.
As you can see by the attached documents, the items are marked as taxable, the taxable subtotal is correct, but it's only calculating tax for the one item (MAILTOOLP). It is NOT calculating tax for the SPLTOOLSUITE item or the discount (HA).
Fix your program or let me know what I'm doing wrong. As I said, this wasn't a problem in the previous quarters, only the first quarter of 2025 and the problem still exists today
This could get people in trouble with state sales tax agencies. Thank you.
