Question

Are Missouri sales taxes automatically Origin or Destination based in QBO? We are a repair shop located in MO & our customers ship product to us/we repair on site/ship.

Forum|Forum|2 years ago
February 9, 2024
1 reply
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Is QBO is set up wrong on MO sales tax?

QuickBooks Online

S

SheandL

Hi there, @12batman.

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

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

QBO has a built-in feature that automatically tracks the rates you charge to your customers. The program does this for you based on the location of the sale or the "ship to" address you add to your invoice or receipt. You don't need to manually keep track of this information, as QBO will take care of it all for you.

Additionally, I would like to know more details regarding what happened to your sales tax for that specific state. This way, we could assess the situation and give an appropriate resolution.

For reference and more information on how QBO collects sales tax, you can visit this article: Learn how QuickBooks Online calculates sales tax.

Additionally, visiting this article will guide you on automatically setting up your sales tax calculation: Set up and use automated sales tax in QuickBooks Online.

For further concerns about sales tax calculation, don't hesitate to get back to us by replying to this post. We're always glad to assist you anytime.

1

12batmanAuthor

As far as I can tell your automatic Location sales tax default does not work properly for the 11 states that are Origin based for in state sales. Is this correct?

R

rvrfrf

Thanks for following up with the Community, 12batman.

QuickBooks calculates locations for sales taxes automatically if you're using your automated sales tax feature. Total sales tax rates are the sum of state rates, plus local rates (which may include city, county, and/or district rates). You don't have to keep track of all the rates you need to charge, instead QuickBooks does everything based on the location of sale, or your Ship To address on an invoice or receipt.

Some states require sellers to charge tax based on business location, even when you sell or ship to a different address in the state you operate in. Your books know the tax rules, wherever you run your business.

If you've identified a rate is incorrect in your automated sales taxes, I'd recommend getting in touch with our Customer Care team and bringing it to their attention. They'll be able to pull up the account in a secure environment, conduct further research with you, and create an investigation ticket if necessary.

They can be reached while you're signed in.

Here's how:

Use the Help (?) icon.
Click Contact Us.
Enter a description of your situation in the What can we help you with? field, then hit Let's talk.
Select Start messaging or Get a call.