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kat-cutler-ryan
October 25, 2020
Question

Can I turn off sales tax, I accidentally set it up for a client that is medical and doesn't charge it

  • October 25, 2020
  • 4 replies
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4 replies

Lourdes-Fernandez
Lourdes-Fernandez
October 26, 2020

Hello,

I hope your having an awesome weekend so far! I'd love to help answer your question this evening.

Although your client is in the medical field and does not require taxes, it is good practice to ensure we enter the correct tax code per line item within any and all transactions.

The time will come when the business will make purchases that do require taxes and we will need the correct agency activated within the Tax Tab so that we can assign the correct tax code per line item in each transaction.

To assist you in helping to enter the correct tax code please reference the link down below:

https://quickbooks.intuit.com/learn-support/en-ca/taxes/common-sales-tax-codes/00/261780

Friendly reminder that even though we do not collect taxes on certain line items in each transaction we still want to assign the proper tax code such as exempt, zero-rated, or out of scope.

I hope this helps!

Kindes Regards,
Lourdes Fernandez

    kat-cutler-ryanAuthor
    October 26, 2020

    Thank you, I love that chart you sent!  However, I'd prefer to be able to turn it off, so I don't have to keep track at all.  They don't file hst, so it would be easier to not have to apply a tax code with each bank feed item.  I set all the accounts default tax codes to "out of scope" so I wouldn't have to , but the bank feed doesn't pick that up sometimes.  I just wondered if there was a way to turn it off.  I have another medical client that I didn't set up the tax section for and it doesn't bug me to apply tax codes.  Faster bookkeeping is the goal!  ;)

      Rebecca R
      Rebecca R
      October 26, 2020

      Hi there kat-cutler-ryan,

       

      Thanks for being part of the QuickBooks family! The tax module in QuickBooks Online is a comprehensive feature that streamlines the process of tracking and filing sales tax. I know that every business has different needs, so setting up and using the tax module isn't always necessary. While there isn't an option to turn it off, let me go over some adjustments you can make to your clients' settings that will help.

       

      You've indicated that you've set the default tax codes for all accounts to "out of scope" which is a fantastic step to take. You can take that a step further and make any tax codes that you've set up Inactive so that they'll no longer appear as an option from the bank feeds or when creating invoices. Please follow the steps below to Remove sales tax rates:

       

      1. From the left menu in your clients' company, navigate to Taxes or Sales Tax.
      2. Choose Manage sales tax from the upper right corner.
      3. Next to each sales tax code under the agency you've set up, choose Make inactive.
      4. Select Done to save your changes.

       

      This will ensure that even in the bank feed, the tax codes that were set up won't appear. If at any point you or your client need to use those tax codes, simply follow the same steps above and select Make active to have those tax codes appear from the drop down again. 

       

      I know that having the option to completely reverse the sales tax set-up would be helpful in this situation, so I encourage you to submit feedback on it to our product development team. Do this by selecting the Gear icon, then Feedback. 

       

      I'm here if you have any follow up questions! 

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