If you are a QuickBooks Online User, Soon, you’ll see a sleek and beautiful new sales tax center that provides powerful insights into who you’re paying and how that fits into your overall tax liabilities. Plus, you’ll enjoy all the features you have now with an option that can calculate tax rates for you.
There’s nothing you need to do right now. But keep an eye out for another email in the coming weeks with instructions on how to verify your business address and confirm your tax agencies.
In the meantime, you can follow these steps………..
How to set up your new sales tax center
Find out how to set up your sales tax center in QuickBooks Online.
If you sell taxable products or services, QuickBooks can help you calculate and track your sales tax. Then, when it’s time to file your sales taxes, you’ll have everything you need to submit your payment.
Here’s how to get started:
- Select Taxes, then select Get started.
Step 1: Double-check your business address
For the most accurate sales tax rates and reports, make sure you’re using the right business address. We use the physical address of your business to automatically calculate your sales tax rate.
If you need to change your business address:
- Select Edit.
- Update your address, then select Save.
Step 2: Match your tax rates and agencies to the official agencies
Tax agencies are the government agencies that collect sales tax in the states, cities, and counties where you do business. You’ll need to match the rates and agency names you previously set up with the official agencies. Make sure to ask your accountant if you don’t know which agency to use.
Here’s what each column means, and how to match your tax agencies to the official agencies.
- TAX RATE NAME: This is the name of the tax rate you created. Even if it’s the same name as the official agency, you’ll still need to connect it before you can use a tax rate on a transaction.
- RATE: This is the tax rate percentage you assigned to the agency.
- YOUR AGENCY NAME: This was created when you assigned the tax rate under tax rate name.
- OFFICIAL AGENCY NAME: These are the official agencies available in the tax center. You can assign sales tax rates for state, city, and county agencies.
To match tax rates with their official agencies:
- From the Select an agency ▼ dropdown, match your tax rate name to the official agency name.
- Select Next.
- Review your tax rates. If everything’s right, select Next then View sales tax center.
What happens to existing data after updating your tax center?
If you’re looking for your past sales tax data, you can find it in the history section of your sales tax settings.