Turn off Automatic Sales Tax

How do I get more help in this area?  I have had an outstanding issue with Quickbooks for several months that no one has resolved.  As I continue research on my own, I believe that automatic sales tax in QB is causing discrepancies resulting in invoices from website sales (through OneSaas) not being pushed through to QB.  This is causing a business disruption.  I have even hired a consultant who hasn't provided any help in getting the situation resolved.  Please help!!

Non taxable isn't an option, everything defaults to taxable. As a general contractor, we don't charge sales tax. It's skewing my books

Thanks for joining the thread, @kathRSC. I can share a few details about exemption from state taxes and city payables accounts.

Yes, you're correct. Making the products and services nontaxable and set each customer's tax info to tax-exempt will help you not collecting taxes for the state and city sales taxes.

Here's how:

Products and services

1. Go to the Sales menu and then select Products and Services.
2. Click Edit from the Action column.
3.  From the Sales tax category section, select Non-taxable.
4. Hit Save and close.
   

Customer

1. Click Sales on the left menu and go to the Customers tab.
2. Choose a customer profile and click Edit.
3. In the Customer information window, go to the Tax info tab.
4. Make sure to remove the checkmark in the This customer is taxable box.
   
5. Enter the Exemption details.
6. Click Save.

In addition, you can uncheck the Tax column from all of your sales forms (like invoices, credit memos, and sales receipts) so QuickBooks won't calculate sales taxes. See the screenshots below:

Also, if you want to turn off the automatic sales tax feature, make sure to edit QuickBooks' previous invoices, credit memos, and sales receipts and then uncheck the Tax column for each line item. Products and services are set up to be nontaxable and the customer's tax info is tax-exempt at the same time.

You can follow the steps below to turn off sales tax:

1. Go to the Taxes menu and then select Sales tax.
2. From the Sales Tax Center, go to Sales tax setting.
   
3. Select Turn off sales tax.
   
4. Choose Yes to confirm.
   

I've added some articles for more details about setting up sales tax and how QuickBooks compute sales taxes:

• Learn how QuickBooks Online calculates sales tax
• Set up and use automated sales tax in QuickBooks Online

In case you want to turn it on again, simply go to the Taxes menu and use the automated sales tax feature.

Feel free to leave a comment if you have additional questions about sales taxes or any QuickBooks concerns. I'm always ready to help you here. Have a great weekend!

I understand the hassle that this caused you, QuickieSuxx. 

I'm here to shares some details about the error that you've encountered in QuickBooks Online.

First, you can manually remove the taxes on the transactions. All you have to do is deselect the TAX column. Then, Save and close.

If the issue still persists, you can perform some basic trouble shooting steps. 

To check if the browser is already full of frequently accessed page resources, causing some unusual responses, try signing into your QBSE using a private browser (incognito).

Here's how:

• Press Ctrl + Shift + N (Google Chrome)
• Ctrl + Shift + P (Firefox)
• Control + Option + P (Safari)

If it works, return to your default browser and perform a clear cache to refresh the system. However, if the issue persists, try using other supported browsers.

As mentioned by my colleague above, after you activated the automatic sales tax, you're unable to turn it off in QuickBooks Online. Though, you can edit the customer's tax information to ensure you will not collect any taxes.

I'll guide you how.

1. Go to the Sales tab and then select Customers.
2. Click the Edit tab.
3. Open the Tax info folder and select the Default tax code.
4. Click on Save.

The tax rate will no longer apply every time you create an invoice for this customer

Additionally, I've added an article that'll help you to file your sales tax return and record your tax payment in QuickBooks Online. To learn more about the process, please click here. 

Reach out to me if you have additional inquiries about Sales Tax or any QuickBooks related. I want to make sure you're taken care of. 

Totally agree @JeffCrk . This is a QBO PROBLEM, not a customer problem. They do not employ best software development practices - if they had they would have tested this "feature" themselves and discovered all of the shortcomings. Instead, they left it to the unsuspecting customers to be beta testers for this shoddy feature that was foisted upon us. Disable it. Figure out a way, QBO and DO IT. We have been complaining about the for over 2 years. It's time you made this right. Stop giving us "workarounds" that don't work.

Hi @meadowlakenorth.

I know how beneficial it is to disable the automated sales tax function when you're not collecting sales tax from your customers. But once enabled, the ability to turn it off is unavailable.

You'll want to make sure your products and services aren't taxable. To check this, you can open each item and categorize it as non-taxable if you aren't collecting customers' sales taxes. 

Let me show you how:

1. Select Sales, then Products and Services.
2. Locate the item, then click Edit.
3. Go to the Sales tax section and then click Edit sales tax.
   
    
4. From the Other options section, tick Nontaxable.
5. Hit Done.
   
    
6. Click Save and close.

Additionally, make sure you set each customer's profile to tax-exempt. Here's how:
 

1. Go to the Customers & leads menu and then select Customers.
2. Click the customer's name and then hit Edit.
3. Go to the Additional info section to check the This customer is tax exempt box.
   

I'm adding these articles for additional guide:

• Add sales tax categories to your products and services
• Use automated sales tax on an invoice or sales receipt

I'm still here if you need more assistance with disabling sales tax from your customers. Take care and more power to your business!