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ctlbill
January 10, 2020
Question

Can you turn off automatic late fees being taxable. I like the feature but since we do non-taxable services the late fees should also be non-taxable.

  • January 10, 2020
  • 22 replies
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Original commenter did not share additional details

    22 replies

    MarsStephanieL
    MarsStephanieL
    January 10, 2020

    Hello there, @ctlbill.

     

    Yes, you can make it as non-taxable by modifying the item details.Let me show you the steps below.

     

    Here's how you can edit and set your items as non-taxable:

     

    1. Go to the Sales page.
    2. Choose Products and Services.
    3. Select the late fee service item
    4. Under the ACTION, click Edit.
    5. Un-tick the box in the Is taxable checkbox.
    6. Click Save and close.

     

    This way, your products and services will now be non-taxable items.

     

    Here's a screenshot for your visual reference.

     

     

    Also, for future reference, you can check this hyperlinked phrase about how to enter late fees or finance and service charges on invoices.

     

    I'll be always around here in the Community to help you if you have any other questions. Have a great week!

    ctlbillAuthor
    January 12, 2020

    My late fee's are set to Non-Taxable, however the automated late fees is still marking them as taxable.

     

    My screen does not look like yours, it has a tax category.  I have screen shots if needed but this form would not let me post them.

      ShiellaGraceA
      January 12, 2020

      Hi ctlbill,

       

      You can turn off the automatic late fees from the settings. Let me walk you through the step-by-step process.

      1. Go to Gear. Then, Account and Settings.
      2. Select the Sales tab.
      3. In the Late fees section, click the Pencil icon.
      4. Mark the box next to Default charge applied to overdue invoices.
      5. Hit Save and then Done.

      Please read this handy article for more information about setting up and applying automatic late fees.

       

      If you have other questions and concerns about fees, please let me know. I'd be more than happy to assist you further. Have a great one.

      teamone
      February 9, 2023

      Same issue here.  I wish I could say it was unbelievable that this is still an issue after being reported at least over three years ago, but I am really not surprised.

       

      Please, if anyone at Intuit is reading this and has any influence to escalate this issue, do so.

       

      It is incorrect (and illegal) to collect sales tax on taxable items in California and probably/possibly the rest of the United States too.  Maybe the IRS and state tax boards need to be made aware Intuit has been knowingly doing this for over three years?

       

       

      AlcaeusF
      AlcaeusF
      February 9, 2023

      Hello @teamone,

       

      I agree it's important to take action about how the late fees work in QuickBooks Online. I would feel the same with the need to perform a workaround to correct the details of a transaction.

       

      It negatively impacts the productivity and compliance of the users with rules and regulations related to late fees. Please know that we value your feedback about the inconvenience of using this ability.

       

      Our product engineers provide regular updates to improve the features and options in QuickBooks. For now, I encourage affected users to send feedback to get this feature sorted out as quickly as possible.

       

      We also make changes and adjustments based on user feedback. Here's how:

       

      1. Click the Gear icon in the upper-right corner.
      2. Select Feedback under Profile.
      3. Share your feedback.
      4. Hit Next to submit.

       

      Also, customizing the appearance and layout of sales forms is a simple yet effective way to enhance your business communications. I've included a link for more information about personalizing the forms in QuickBooks: Customize invoices, estimates, and sales receipts in QuickBooks Online.

       

      Don't hesitate to reach us here if you have questions or concerns about the QuickBooks features or managing sales taxes. The Community and I will be happy to help you some more.

      teamone
      February 9, 2023

      This reply is infuriating and frustrating.  Why even bother?  Three years and dozens of posts just in these forums and who knows how many feedback reports and no action?

       

      The "workaround" is ineffectual and unhelpful.  Are you really suggesting to somehow keep track of every late fee as it is automatically applied to an invoice without way for me to know and then edit each one, contact each customer individually to explain not only did they get a late fee, but it is for the incorrect amount?  Let's try to be serious here, at least.

       

       

        BWAquatics
        October 26, 2024

        October 2024 and this is STILL an issue for so many of us!

        Intuit needs to come up with a solution and not just automatically make late fees taxable when QB automatically applies the late fee.

        Our services are not taxable and some of our customers are tax-exempt, yet QB still adds the late fees as taxable!  This needs to get resolved!

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