Is this Bugs on Quickbooks Online???

Thanks for providing detailed information about your concern, Aizza. I'm here to provide you with an explanation of how the automated sales tax feature works in QBO.

QuickBooks automatically calculates the total tax rate for each sale based on the following:

• Your customer's tax-exempt status
• Where you sell and where you ship
• What you sell

On the other hand, if your business has no physical presence in other states, you generally don't need to charge taxes for out-of-state transactions. But you are a remote seller if you have an economic nexus in another state. When you sell to that state, you charge tax rates at the place where your product is going. 

Furthermore, there's a unique tax scenario with various calculations. For example, California state, county, and city tax rates focus on where you run your business. These rates stay the same even when you sell or ship to somewhere else in the state. Yet, the district rate you must collect changes depending on where you sell or send in the state. That's why your sales tax is calculated using the city rate. 

For more details about how QuickBooks calculates taxes, please see this article: 

• Learn about Sales and Use Tax in the US
• Learn how QuickBooks Online Calculate Sales Tax

If you still have concerns or need further assistance, it would be best to consult with a tax professional or your accounting department for clarification.

Please let me know if you have other questions about managing your sales tax. I'm always here to help. Take care always and have a good one.