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Sales Tax Update – Default Sales Tax Rate is Coming Back
We recently launched our new sales tax experience in QuickBooks Online, and we quickly heard detailed and pointed feedback. We’re rapidly making changes to address the top issues: a company default tax rate and marking whether a customer is taxable or not. Our current plan is to roll out these changes Friday night, Nov 9th. You should see them starting Saturday, Nov 10th.
Company default tax rate
We’re adding back the ability to have a company default tax rate. If you previously had a default rate we’ll try to use that for your default rate. You should double check this setting. It’ll appear on invoices and sales receipts for all new customers that are taxable. Need a different rate for a particular customer? Select a different rate in the transaction, and the rate will stay “sticky” (QuickBooks Online remembers it) for that customer.
You can check or set your default rate by going to Company> Sales Tax Center> Edit Tax Settings > Set Default Rate. In this window, you’ll see that we also added back the ability to automatically make all new customers taxable in this screen.
Make customers taxable
We’re also adding back the ability to make customers taxable so you can keep track of customers that are taxable and those that are tax exempt. Within each customer record, we’re adding a setting for making the customer taxable or not. (Customers > Customer Center > Edit Customer > Taxes tab).
Customer Contact List report
A quick way to see a list of your taxable customers is to run the Customer Contact List report. To make this easier to get to, we’re adding a link for this report in the Sales Tax Center. We’ve preset the report to include the Taxable field status and the Taxable Rate.
The transition to the new sales tax experience isn’t as smooth as we wished it to be. But we’re making changes as quickly as we can in response to your direct feedback. Our current plan is to roll out these changes Friday night, Nov 9th. You should see them starting Saturday, Nov 10th.
These same changes aren’t in QuickBooks Mobile yet because we need to get them into QuickBooks Online first. Until we roll the changes to our mobile app, be sure the tax rate for a customer is correct when you’re creating an invoice or sales receipt on the go.
We want to continue to make sales tax better for you so we’re looking at some other improvements based on the feedback you’ve given us. We’ll roll these improvements out over time.
Feedback—it’s a good thing
The entire sales tax team values your candid and detailed comments. Letting us know what works well and what doesn’t and why helps us make changes. You can give feedback by clicking the Feedback button in QuickBooks Online, and you can also post responses in this blog.