How many tax codes have multiple rates, and where are those regions?

Forum|Forum|6 years ago
November 7, 2019
2 replies
2 views

Hi. I'm a developer who has acquired a solution integrated with QuickBooks that has mapped one tax rate to each tax code record. There could potentially be multiple tax rate records per tax codes, but how often does that occur, and in what regions? Do I really need to worry about it if I'm only selling to a niche market in specific areas?

P

plung

I don't know how your app will integrate with QBO. But as user, I have to make sure your app has the option to pick the tax table to specific country/region.

R

Rasa-LilaM

QuickBooks Team

Welcome to the Intuit Community, @baffled_in_boston.

The number of tax codes and rates used to track the items depends on which region the business is located. Aside from that, the business type also affects how to set up the sales tax in your account.

If you want to add another rate, the process can easily be done in QBO. Let’s go to the Sales Tax Center to create it.

Here’s how:

Go to the Taxes/ VAT menu on the left panel to access the Tax Center.
From there, click the Add Tax button in the upper right hand.
In the Add Tax screen, navigate to the Tax rate section to enter a new rate.
Follow the on-screen instructions on how to set up the tax.
Once done, tap the Save button.

Check out the How do I set up sales GST/VAT rates and use them on forms article for more details. It also contains videos and steps on how to track sales taxes in QBO.

Please let me know if there's any other way I can be of assistance. I'm here to make sure you're taken care of. Have a great rest of the day.

B

baffled_in_bostonAuthor

This issue actually came to light from the Canadian version of the Online system. For the American version, it worked. The American version seemed to accept anything for taxes, or nothing at all, but the Canadian version has no option for automatic taxes, and is very rigid, so as a developer, you have to pull the tax code table and the rate table to get the tax code and rate IDs. QuickBooks has it structured as two different tables. In the program I'm working with, it's a single table with one column for tax code, and one column for tax rate ID. When I push an invoice, I have to grab the data in this table and send those codes or else I get a business validation error. My question is - what if I sell to someone who has a tax code record with multiple rates? QuickBooks allows for it, but no one would need to enter multiple rates for a Code unless they were in a municipality somewhere that had multiple rates per code for some reason. Does anyone know of any place that does that? In Vermont, there's only one rate per Vermont code. In Winnipeg with the GST, there's only one rate for the GST code record, but what about the rest of the world? In the QuickBooks interface, I thought I just selected Vermont. I don't recall having to make separate rates, myself, but that's the American version. I can probably test NYC which if any place would have a complicated tax system, I think they're likely, but I can't test for Canada because I don't have access to an online Canada QuickBooks system. If there's a way I can set one up through the Sandbox, please let me know. I was really surprised they were that different in that the Canadian version gave me a business validation error and the American version was fine with it.

C

Catherine_B

Level 9

Hello there, baffled_in_boston.

Yes, the automated sales tax option for QuickBooks Canada is unavailable. You have to manually create or add a tax rate. You can create a trial account for each region to experience how we track out taxes. Also, you can check our trial links for Canada to experience how taxes works.

You might also want to check our Help articles for your reference. Thanks for dropping by the Community!

Sign up

Login with SSO

Let's get you signed in

Login with SSO