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Frenchefusa
Frenchefusa
June 19, 2022
Question

How to input sale tax outside the state

  • June 19, 2022
  • 1 reply
  • 0 views
I am an artist from Houston, TX and I do some special events outside the state like in KS, GA, FL,…
A customer from Atlanta, GA placed an order in April that I shipped in May. 
In qbo Online, mark the customer as tax-exempt as I am shipping the artwork to Georgia. If I Select the tax rate from Houston, qbo calculates anyway the tax!! Now, if I select tax rate ‘Based on Location”, the tax is zero.
If this is correct do I need to report the sale in Texas or In Georgia or I do not report it as the tax amount is zero?

1 reply

C
CharleneMaeF
June 19, 2022

It's important to ensure the taxes are accurately tracked, Frenchefusa.

 

If you collect sales tax in multiple locations, you'll need to understand how QuickBooks calculates it. To help you understand it, I've added some details below:

  • If you sell in multiple locations, the correct sales tax for each location needs to be calculated.
  • QuickBooks Online automatically calculates the correct sales tax for you for each location.
  • For us to calculate the correct sales tax, we need to know where you are and make sure your sales tax settings are correct.

 

Please know that you'll need to register with the state for a sales tax permit and figure out what instate sales are taxable. Is sales tax reporting in your state on an accrual or cash basis, and the state will set the frequency of filing/paying sales tax. You can consult an accountant to help and guide you better.

 

Additionally, you may also read these resources to learn more about sales tax in QuickBooks Online. These articles will guide you in tracking them in the program: 

 

Please know that I'm just a post away if you have clarifications with managing sales tax in QuickBooks Online. I'm always willing to help. Have a good day.

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