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Buy nowHello there, @waxchik.
I'm here to share some information about how QuickBooks Online (QBO) calculates sales tax. Firstly, QBO computes your tax rate for each sale based on the following:
It's important to note that not all customers are required to pay sales tax. Tax-exempt organizations such as churches, schools, and other non-profit organizations fall under this category. However, the rules regarding this may vary depending on your location. In some cases, QBO may still need to calculate it for tax-exempt customers. If this happens, you'll need to ensure that your items are mapped to their proper tax categories and that your customer's address is correct for each transaction. QuickBooks will then follow the correct exemption rules based on the items sold and the customer's address.
You can check this article to find out if your customer doesn't need to pay sales tax: Understand and set up sales tax-exemptions in QuickBooks Online.
Furthermore, you don't have to keep track of all the rates you need to charge since QBO does all that based on the location of sale or the "ship to" address you add to an invoice or receipt. Also, please note that some states require sellers to charge tax based on business location even if you ship it to another address in your state. Rest assured that QBO knows the tax rules, wherever you run your business.
You can also take note of the rules for how a product's tax will change from state to state. You can assign categories to every product you sell so that QBO will know how much tax is needed to be charged for this.
Moreover, you can also use the See the math option to see the detailed breakdown of how QBO computes the amount shown in your invoices. You can also use this feature to edit and select the correct rate.
For reference, you can check this article: Learn how QuickBooks Online calculates sales tax.
Alternatively, I recommend entering a sample invoice using incognito and ensuring that the rates are accurately entered.
See these keyboard shortcuts to open a private window:
You can also try using a supported browser to use QBO to its advantage.
If the issue persists even after opening it in private mode, I suggest contacting our support team. They can help investigate this matter since they have the necessary tools and expertise.
If you want to record or adjust sales tax payments in the tax center, you can refer to this article for guidance: Manage sales tax payments in QuickBooks Online.
Feel free to get back to us if you have further questions about calculating sales tax in QBO, The Community space is always here to assist you.