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P
psieric
September 30, 2020
Question

My invoices are defaulting the sales tax calculation to "based on my location." How do I change that to based on my client/customer location?

  • September 30, 2020
  • 2 replies
  • 0 views
Original commenter did not share additional details

2 replies

J
JonpriL
September 30, 2020

Hello @psieric,

 

Sales tax is calculated base on the physical address of your business. I'm want to ensure that you can change the address of your sales tax base on your client's location.

 

First off, let's create a custom sales tax rate base on the agency of your client's location. Here's how:

  1. Go to the Taxes menu and select Sales Tax.
  2. Select Sales Tax Settings.
  3. Click Add agency.
  4. Choose a city or state of your client's location.
  5. Select a filing frequency.
  6. Enter the date base on you start tracking sales tax in this location.
  7. Click Save.

Once done, you can manually enter the address of your client when creating an invoice. To do so:

  1. Go to the +New button.
  2. Under CUSTOMERS, select Invoice.
  3. Select one of your clients in the Customer field.
  4. Enter the details as necessary.
  5. Click See the math.
  6. On the Your tax agency and standard rate box, select the Pencil icon.
  7. Enter your client's location.
  8. Click Close.

Additionally, here's an article you can read to learn more about the automated sales tax calculation: Set up and use automated sales tax in QuickBooks Online.

 

You can also visit and read through this helpful article for the steps in preparing and filing your sales tax return and recording the payment you've made: File your sales tax return and record tax payment in QuickBooks Online.

 

If there's anything else that I can help you with, please let me know by leaving a comment. Stay safe!

P
psiericAuthor
October 1, 2020

That didn't solve the issue. I need the invoice to calculate based on my client's address.  I put in the clients address in the shipping to field and it still calculates tax based on my business location. In Ohio, the 88 counties all have different sales tax rates. I need to charge sales tax based on which county my client is located. 

J
JonpriL
October 1, 2020

Hello @psieric,

 

Thank you for sharing the results after following the steps I've suggested above. Since it didn't calculate your sales tax base on your customer's location, we can consider manually adding the sales tax rate base on your customer's agency and location.

 

To do so:

  1. Go to the +New button.
  2. Under CUSTOMERS, select Invoice.
  3. Select one of your clients in the Customer field.
  4. Enter the details as necessary.
  5. On the Select tax rate menu, select +Add rate.
  6. Select Single.
  7. Enter the agency name base on your customer's location. Say Ohio Department of Taxation.
  8. Type in the sales tax rate.
  9. Click Save and then, Save and close.

Additionally, here's an article you can read to learn more about the accuracy of your sales tax calculation: Learn how QuickBooks Online calculates sales tax.

 

You can also check and read through the steps outlined in this helpful article to pull up a report and understand how much sales tax you owed: Check how much sales tax you owe in QuickBooks Online.

 

Stay safe and leave a comment below if you have any other questions. I'll be here to lend a hand. 

Fiat Lux - ASIA
Fiat Lux - ASIA
October 1, 2020

@psieric 

As additional reference, explore this AST Filing and Reporting app.

https:// taxjar.grsm.io/mytax

 

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