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T
TTomlinson
June 28, 2024
Question

Turning off Sales Tax

  • June 28, 2024
  • 1 reply
  • 0 views

I have QuickBooks Online, and I turn on the sales tax by mistake. I am needing to turn sales tax off. I have one sales invoice that has been paid. I know that I need to un-reconcile the invoice, delete the payment and delete the invoice that shows the sales tax before I can turn the sales tax off. The question that I have is that I have estimates in the system that have not been turn into invoices yet. Will I have to delete all estimates and PO's before I can turn off the sales tax or can I just delete the one invoice and payment turn sales tax off and then re-invoice and apply payment. 

1 reply

J
JuliaMikkaelaQ
June 28, 2024

Yes, deleting all transactions, including the estimates and purchase orders, allows you to turn off the Sales tax successfully in QuickBooks Online (QBO), @TTomlinson. I'll provide the details below for guidance.

 

Since it's mistakenly turned on the Sales tax, this affects all your posting and non-posting transactions. Thus, you need to delete them before turning the feature off. Before doing so, it's best to take note of the details of these transactions, which is helpful in the future when you're recreating them. You may use the Transaction List by Customer report in the Reports menu to view and save them all.

 

Once deleted, proceed with toggling off Sales Tax by following these steps:

 

  1. Go to Taxes and select Sales Tax.
  2. Click the Sales Tax Settings button.
  3. Hit Turn off sales tax, then Yes to confirm.
     

 

I'll attach this article for the detailed process: Turn off sales tax in QuickBooks Online.
 

On the other hand, if you have a lot of transactions, you might consider not deleting them and making sure to untick the Tax box in every entry instead, so it won't be taxable. This way, you'll save time in deleting and recreating them. Here's an image for a visual demonstration:

 

 

In addition to that, since the invoice has already been paid, you can record a credit memo or make a refund for the excess payment you've received due to the sales tax.

 

The details shared above will guide you in handling your transactions and turning off the sales tax feature within the program. If there's anything that we can help you with, notify us. The Community space is always at your service and ready to lend a hand.

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