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accountingboogie
November 10, 2020
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QBO - Sales taxes outside US

  • November 10, 2020
  • 2 replies
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Hi,

I am trying to set up my sales taxes. The company is currently in California, but we have customer in Canada. QBO ask me to set up my sales taxes with an agency, but I don't have the choice to add another sales taxes agency outside of the US. Is there a way to manually add sales taxes with my own % (in that case TVQ, Quebec sales taxes)?

 

Thank you

    Best answer by Maybelle_S

    Hello there, @accountingboogie.

     

    In QuickBooks Online (QBO) United States (US), we're unable to add agencies from other states. The list of tax agencies is only for the US. Though, you can create a new account for Canada (CA) to add a tax agency for that country.

     

    To learn more and for additional reference, you may check this article: Set up and use Automated Sales Tax.

     

    Find out more about the sales tax reports including the Sales Tax Liability in QBO. Scroll down to the How to Track and Pay Sales Tax: Tracking, Recording, & Reports section for more information: Sales Tax in QuickBooks Online.

     

    Don't hesitate to drop a comment below if you have other questions. I'm always willing to help. Take care!

    2 replies

    Rubielyn_J
    Rubielyn_J
    November 10, 2020

    Let me guide you on how to set up sales tax outside US jurisdictions in QuickBooks Online, @accountingboogie.

     

    If you collect sales tax in multiple locations you'll need to understand how QuickBooks calculates it.

    • If you sell in multiple locations, the correct sales tax for each location needs to be calculated.
    • QuickBooks Online automatically calculates the correct sales tax for you for each location.
    • For us to calculate the correct sales tax, we need to know where you are. You'll need to make sure that your sales tax settings are correct.

    To do this, I suggest consulting an accountant on how you can set up the non-us sales tax. This is to ensure that the recordings are accurate to avoid any miscalculations. 

     

    The second option is to use the API. For this, I recommend posting your concern on their forum as they are the best gurus that can help you with your concern. I'd be glad to guide you how:

    1. Go to this link: https://help.developer.intuit.com/s/
    2. Select QuickBooks Online.
    3. Click Ask a Question.

    You may also read these resources to learn more about sales tax in QuickBooks Online: 

    Know that I'm just a post away if you have clarifications with managing sales tax in QuickBooks Online. I'm always willing to help. Have a good day.

    A
    accountingboogieAuthor
    November 10, 2020

    Hi thank you for the quick answer.

     

    My question is more, is there a way to not link sales tax to an agency and is it possible the currency is automatically in CAD or at least convert in Canadian dollar?

     

    QBO doesn't let my set up sales tax without an agency (the only agencies are in the US), and legally I need to collect Quebec (Canada) sales tax when I send an invoice for my clients there. I don't mind filing manually my sales taxes, I just need it to appear at the right place in the invoice and that QB calculate the percentage I need.

      MaryLandT
      MaryLandT
      November 10, 2020

      Let me help track the Canadian sales tax, accountingboogie.

       

      In order to take foreign taxes, you need turn on the Multi-currency feature in QuickBooks Online. Then, you can add the customer and choose their currency.

       

      Here's how to turn on multi-currency:

       

      1. Go to Settings ⚙️.
      2. Go to Account and Settings, then go to Advanced.
      3. Select Edit ✎ to modify your currency settings.
      4. Choose the Multicurrency checkbox.
      5. Select Save and close.

      Next, you need to add the CAD currency:

      1. Go back to Settings ⚙️, then Currencies.
      2. Click Add currency.
      3. Select the new currency from the Add Currency ▼ drop-down menu.
      4. Click Add.
      5. The currency you selected is added to your list of currencies.

      Your last step is to add a foreign customer. If you've already added the customer, you won't be able to change the currency in their profile.  Here's how:

      1. From the left menu, select Sales.
      2. Click Customers, then New customer.
      3. In the Customer information window, fill out the needed information.
      4. Make sure to add their Canadian address for sales tax calculation.
      5. Select Payment and billing.
      6. In This customer pays me with field, select the customer's currency. This is the currency that the customer uses to pay you for products or services.
      7. Click Save.

      Check out the About Multicurrency for more details about this feature in QuickBooks.

       

      Stay in touch if you have follow-up questions. I'll be right here to help you.

        A
        accountingboogieAuthor
        November 10, 2020

        I did all that already, but it is the sales tax I don't understand on how to add them without an agency since the only options are agencies in US and not Canada.

        M
        Maybelle_SAnswer
        November 10, 2020

        Hello there, @accountingboogie.

         

        In QuickBooks Online (QBO) United States (US), we're unable to add agencies from other states. The list of tax agencies is only for the US. Though, you can create a new account for Canada (CA) to add a tax agency for that country.

         

        To learn more and for additional reference, you may check this article: Set up and use Automated Sales Tax.

         

        Find out more about the sales tax reports including the Sales Tax Liability in QBO. Scroll down to the How to Track and Pay Sales Tax: Tracking, Recording, & Reports section for more information: Sales Tax in QuickBooks Online.

         

        Don't hesitate to drop a comment below if you have other questions. I'm always willing to help. Take care!

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