Sales tax is getting easier! Through the New Automated Sales Tax experience, you just need to answer few simple questions and QuickBooks Online will know what taxes apply to your business, set them up, and automatically track your sales taxes.

This means you no longer need to select a tax rate when you create an invoice or other transaction. As long as your Sales Tax Center and all applicable tax agencies are set up, the system will automatically do it for you!

So... how exactly does Auto Sales Tax work? Here's a quick guide to this feature.

 

IMPORTANT!

  • You set your accounting method to Cash AFTER setting up the Sales Tax Center, QuickBooks will still automatically calculate your sales tax but your Sales Tax Center will still display based on accrual method. As a workaround, you can use Sales Tax Liability reports to determine the proper Sales Tax payments recorded in QuickBooks Online.
  • You set your accounting method to Cash BEFORE setting up your Sales Tax Center, you will be defaulted to manual sales tax. In this case, you may want to start a new QBO account/company file then set up the Sales Tax Center prior to setting your accounting method.

Need additional help? See our additional resources for migrating to Auto Sales Tax and navigating the Sales Tax Center.