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May 15, 2024
Question

Does anyone knows how to charge taxes based on service location instead of our business address? The new look broke this function. If you know how to resolve pls respond

  • May 15, 2024
  • 1 reply
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We are a service company and sales taxes on invoices have to reflect the address where the service was given.

1 reply

DivinaMercy_N
May 15, 2024

I know a way how you can make sure that the sales tax will be calculated based on the location of the service, @jd-yarb. I'm here to guide you in setting this up.

 

To do so, you have to make sure that the service location is entered in the Ship to field of the invoice. 

 

Let's start with ensuring that the shipping address of the customer is entered in their profile. This way, QuickBooks Online (QBO), will automatically calculate the sales tax based on the location of the service when you create an invoice. Here's how:

 

  1. Select Customers in the Sales menu.
  2. From there, locate the customer. Then, select the name to open and click Edit.
  3. Next, scroll down to the Addresses section and ensure that the service location is entered in the Shipping address field. 

 

Once done, create an invoice again and check if this now calculates the taxes based on the shipping address. Refer to these steps:

 

  1. Click the Invoice option in the +New button.
  2. Next, select the customer you want to bill. 
  3. Select the item, add the rate, and check the Tax box.
  4. See below if there are taxes calculated. If still incorrect, click the See the math hyperlink. 
  5. Check if the Automatic Calculation is selected in the Sales tax rate drop-down.
  6. Then, click the Edit button in the Location and addresses to make sure that the shipping address of the customer is added in the Ship to field.
  7. Make necessary changes if needed and click Save.
  8. Once done, select Close and refresh the page.

 

For more details on how sales tax is calculated in QBO, feel free to read this article: Learn how QuickBooks Online calculates sales tax.

 

Then, to help you have a detailed view of the taxes you owe and the description of why owe them, you can run the Sales Tax Liability report in QBO. For guidance, check out this link: Check how much sales tax you owe in QuickBooks Online.

 

If there are any other questions you have regarding sales tax on your customer's invoice, feel free to let me know. I'll be available round the clock to assist you. Stay safe.