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M
mmccormack-crane
May 2, 2024
Question

Do you handle multi state sales taxes on estimates?

  • May 2, 2024
  • 1 reply
  • 0 views
We perform the work in another state and bill the customer for parts. The state tax computed on the estimate is based upon our company location. Should be customer location.

1 reply

R
RoseJillB
May 2, 2024

Yes, we do, mmccor. QuickBooks Online (QBO) does handle multi-state setups to cover customers' needs of transacting from other locations with their businesses.

 

The total tax rate for each sale is calculated by QuickBooks in an automated manner. This calculation is based upon the following criteria:

 

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

 

To avoid calculating the sales taxes based on your company's location, let's ensure to add a customer address as QuickBooks will based on the location of sale or the "ship to" address you add in an invoice or receipt.

 

Moreover, It's important to keep in mind that certain states mandate that sellers impose taxes based on the location of the business, regardless of whether the sale is made or shipped to another address in the same state. QuickBooks is well-versed in tax regulations for all locations where your business operates.

 

We have a basic sales tax guide available if you wish to gain a better understanding of sales and use tax in the US. Alternatively, you can contact your accountant or visit your state's sales tax website for further information.

  

Let me know if you have further questions about handling taxes. I'll keep myself available to help you. Have a good one!

M
mmccormack-craneAuthor
May 4, 2024

Your response doesn't solve the issue. It removes the use of the automated sales tax. For example, if I change the city,st and zip of Crane South then the automated sales tax works. The same goes for invoicing. QB should be using the customer address and not the company adddress. With your solution I would have to lookup the sales tax and check if I have added one for it. The reporting would be a nightmare were the states want a breakdown of the taxes collected. This is the primary use of the automated sales tax.

G
GenmarieM
May 4, 2024

Hello there, mmccormack.

 

Let me chime in on this conversation to share information about calculating sales tax in QuickBooks Online (QBO).

 

QBO works as designed, and it calculates sales tax based on your customer's tax-exempt status, where you sell and ship, and what you sell. However, there are instances in which QuickBooks calculates taxes based on business location since QB knows the tax rules wherever you run your business.

 

You can visit this article for more information about how QuickBooks calculates sales tax: Learn how QuickBooks Online calculates sales tax.

 

Moreover, I'm adding this article as your reference on how to use Sales Tax Liability in QBO: Check how much sales tax you owe in QuickBooks Online.

 

I'm always here to provide further guidance if you have more concerns about your calculated sales tax QBO.

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