Solved

Sales Tax Still Calculated Wrong

Forum|Forum|1 year ago
May 12, 2025
2 replies
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It's still broken. See case xxxxxxxxxxx on your side, Intuit/QB Team.

I recreated the issue with a support member on the phone. Then a few days later got a message saying they couldn't recreate it.

Here's an easy way to recreate it.

1. Set up an item as not taxable.

2. Set up a customer as NOT tax exempt. Make sure they're in a taxable state like Wisconsin.

3. Create an invoice using the item created in step #1. Make sure the ship to is a taxable state (like Wisconsin).

4. The item should not be checked as taxable as the item itself is set up as not taxable. This is correct.

5. Check the taxable column on the item in the invoice.

6. Watch the "taxable subtotal" change to the correct amount.

7. Set sales tax to "automatic"

8. Notice no sales tax is calculated.

It's a HUGE problem. I will not call in again and waste an hour to do this again. Fix it.

It's an easy programming logic error. The application seems to be checking that the item is taxable itself in item setup, and that the line item on the invoice is checked. It should ONLY be the latter.

QuickBooks Online

Best answer by bvstone

So the escalation team worked for me to get this fixed. Management said "nope, this is how it works now... tuff nookies".

They said I could create duplicate products, one taxable, one not. But the item itself HAS to be taxable in order for it to work correctly.

What a bunch of CLOWNS are working on QBO. Maybe learn accounting before actually working with software millions of people use.

Don't get me started on subtotals. Holy moly. This QBO software is a pile of steaming hot garbage.

Here's a fun little new item I found.

If I duplicate an invoice from 2024 where the taxes are correct, everything works as it should.

But if i create a new invoice, sales taxes aren't calculated correctly.

I got a voicemail from the Intuit team and they said they would also email to set up a call. I appreciate that. But, it's been almost an hour and no email. I will wait and watch my spam.

BigRedConsulting

RE:

1. Set up an item as not taxable.

...

5. Check the taxable column on the item in the invoice.

Yes, the taxability setting on the item record is just a default. The setting on the invoice's line item is all that should matter.

As you suggest, it seems the tax calculation code is referring back to the item to decide how to actually calculate the tax, and not to the detail of the invoice line items.

If this is what's happening, it's a typical engineering mistake, and one that the testing team should have easily found. It's about the second thing I'd test if I were tasked with it.

I continue to be amazed at how QuickBooks Online gets so many things so very wrong so much of the time while QuickBooks Desktop just works.

Yep, I have a call with the escalation team this morning. I hope things go well.