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M
MikeW3
July 11, 2022
Question

How do I get QB to use Custom Tax rate that I assigned to customers when invoices are created? Our business cannot use the "Based on Location" feature, causes problems.

  • July 11, 2022
  • 1 reply
  • 0 views
We need the ability to set our Custom tax Rate as the default in QB. We use a third party production software which does ALL our tax calculations and when we send the data to QB doesn't use the tax rate we specified. We have to manually update the invoices in QB every day to correct the tax collected.

1 reply

K
Kevin_C
July 11, 2022

Hello there, @MikeW3. Let me provide some insight into how QuickBooks Online (QBO) calculates tax rates.

 

Normally, QBO will automatically calculate taxes based on your customers' addresses for easy and accurate filings, so setting up a Custom tax Rate as the default is not possible. That said, what you normally do by manually updating the tax rates each time your invoices sync from the third-party app to QuickBooks works in this case.

 

In the meantime, let’s share with our product engineers how you’d like QBO to calculate sales taxes. We recognize how beneficial it is for you and your business. Since this option is not yet possible, I recommend sending your feedback to our Product Development Team. They can review your suggestions and might make some adjustments in the next update.
 
Here's how:
 
  1. Go to the Gear icon.
  2. Choose Feedback.
  3. Enter your comments or product suggestions.
  4. Then click Next to submit feedback.

 

In case you'll need to check how much sales tax you owe, we can run the Sales Tax Liability report to help make sure that everything is accurate before you file your return to your tax agency.

 

Be sure to get back to me if you need more help in managing your sales taxes. It would be my pleasure to help. Have a good one!

M
MikeW3Author
July 13, 2022

Thanks for the reply. We never had this problem before QB created the "Based on Location" process, as my third-party app. would link the tax rate with the same rate in QB and everything was great, then they had to change it. We do not have addresses in QB as I only use QB to track income/expense, payroll, taxs, pay bills etc. Our third-party software (which is our production system) controls all charges and taxs based on local sales.

Because of this, we now have to do double the work.

Even if I set the customer default rate to the custom rate, it still defaults to the "Based on Location" rate on the imported invoice.

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