Are Missouri sales taxes automatically Origin or Destination based in QBO? We are a repair shop located in MO & our customers ship product to us/we repair on site/ship.

Hi there, @12batman. 

QuickBooks Online automatically calculates the total tax rate for each sale based on the following factors:

• Your customer's tax-exempt status.
• Where you sell and where you ship.
• What you sell.

QBO has a built-in feature that automatically tracks the rates you charge to your customers. The program does this for you based on the location of the sale or the "ship to" address you add to your invoice or receipt. You don't need to manually keep track of this information, as QBO will take care of it all for you.

Additionally, I would like to know more details regarding what happened to your sales tax for that specific state. This way, we could assess the situation and give an appropriate resolution.

For reference and more information on how QBO collects sales tax, you can visit this article: Learn how QuickBooks Online calculates sales tax.

Additionally, visiting this article will guide you on automatically setting up your sales tax calculation: Set up and use automated sales tax in QuickBooks Online.

For further concerns about sales tax calculation, don't hesitate to get back to us by replying to this post. We're always glad to assist you anytime.

As far as I can tell your automatic Location sales tax default does not work properly for the 11 states that are Origin based for in state sales. Is this correct?

Thanks for following up with the Community, 12batman.

QuickBooks calculates locations for sales taxes automatically if you're using your automated sales tax feature. Total sales tax rates are the sum of state rates, plus local rates (which may include city, county, and/or district rates). You don't have to keep track of all the rates you need to charge, instead QuickBooks does everything based on the location of sale, or your Ship To address on an invoice or receipt.

Some states require sellers to charge tax based on business location, even when you sell or ship to a different address in the state you operate in. Your books know the tax rules, wherever you run your business.

If you've identified a rate is incorrect in your automated sales taxes, I'd recommend getting in touch with our Customer Care team and bringing it to their attention. They'll be able to pull up the account in a secure environment, conduct further research with you, and create an investigation ticket if necessary.

They can be reached while you're signed in.

Here's how:

1. Use the Help (?) icon.
   
   
    
2. Click Contact Us.
   
   
    
3. Enter a description of your situation in the What can we help you with? field, then hit Let's talk.
   
   
    
4. Select Start messaging or Get a call.
   
   

Be sure to review their support hours so you'll know when agents are available.

I've also included a detailed resource about working with sales tax which may come in handy moving forward: Learn how QuickBooks calculates sales tax

I'll be here to help if there's any additional questions. Have a wonderful Monday!

QB did not collect the correct sales tax for me in MO, I owe MO $1160.70 more than QB calculated. I have verified that I have the correct addresses for the customer but it most cases it only added the state, in some cases it added the city or county but not both and never added any special districts. 

I acknowledge the importance of accurate sales tax calculations. Let me offer more detailed insights to address your concern effectively, @TC-STS.

QuickBooks Online automatically calculates the total tax rate for each sale based on the following factors:

• Whether your customer is tax-exempt.
• The locations where the products or services are sold and delivered.
• The type of products or services that are sold.

These considerations help ensure that the computed tax complies with local and state regulations, providing an accurate and reliable tax calculation for each sale. Let's ensure that your sales tax is accurate and review each transaction from the report.

Here's how:

1. Select each transaction to open it.
2. Click on See the math to view the tax calculations. (If you're using the new estimate and invoice experience, select Edit tax instead.)
3. From the How your sales tax is calculated window, click Close.
4. Hit Save to recalculate the sales tax based on any adjustments made.

I will also share an article with you that offers guidance on how to review your transactions and ensure their accuracy: Correct calculation errors with Automated Sales Tax address verification in QuickBooks Online.

To pinpoint what is causing the discrepancy, we can manually alter the sales tax amount as needed. This adjustment can also account for any rounding differences that may have occurred.

Override the sales tax amount:

1. In your invoice or sales receipt, click on See the math.
2. Choose Override this amount.
3. Before entering the adjustment, read the provided options and steps. Then, enter the desired rate or amount.
4. Select a reason for the modification and click Confirm.
5. Finally, click Save to apply the changes.

You can also explore additional detailed instructions on modifying sales tax entries in QuickBooks Online by visiting this resource: Override sales tax on transactions in QuickBooks Online.

Automated sales tax makes it easy to keep accurate records. If you receive tax credits or discounts, or if fines are applied, you can easily update the amount of sales tax you need to pay. For guidance on modifying these adjustments in QuickBooks Online (QBO): Create or delete a sales tax adjustment in QBO.

Additionally, consider using QuickBooks Live Expert Assisted to enhance your accounting practices, maintain accuracy in your financial records, and access expert support. This service can free up your time, enabling you to concentrate on expanding your business.

Your understanding and cooperation are invaluable as we make the necessary adjustments to our system. We are committed to keeping precise financial documentation and ensuring compliance with all tax requirements. Kindly click the Reply button, and we will address your concerns swiftly.