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A
athlaw
August 19, 2023
Question

Defect: Services -> Certified, Licensed Professional NOT TAXABLE IN AZ

  • August 19, 2023
  • 1 reply
  • 8 views
You ask me the category of the product, but you improperly tax it.

1 reply

D
DebSheenD
Level 5
August 19, 2023

Hello, @athlaw.

 

I'd like to help you with taxes. 

 

Before that, I need more details about this. You mentioned something about the category product and taxable. So, I'd like a screenshot about this, so I can dig a little deeper. Cover or censor any sensitive information if needed before posting the image. 


Ping me up by hitting the reply button and I'm always here to help.

A
athlawAuthor
August 19, 2023

Hi Deb, That's very kind of you to offer to help. Right now I'm actually just reporting a bug. I just used the manual "non-taxable" override in this case to work around this defect.

 

I'll attach a screenshot of the defect for your team!

 

In Arizona, sales tax is not collected on "professional services".  Your software has it backwards.

Here is a description of the defect: 

 

In the "Products and services" page, click edit on an item, and click "Edit sales tax" and search for "Licensed, certified professional-like attorneys or accountants-without tangible personal property or data security".  Select this and save.  Expected Behavior: When this tax category is selected for a product, the "Taxable" checkbox should not be checked when the user is returned to the list of "Products and Services".  Actual Behavior: "Taxed" is checked; invoices show services as taxed and calculate and add tax erroneously

 

R
Rea_M
Level 10
August 20, 2023

We recognize your inputs, athlaw.

 

I'll share some insights about setting up a sales tax category on service items and guide you in sending feedback or product recommendations to help improve the features and your experience using QuickBooks Online (QBO). 

 

In QuickBooks, you need to manually click the Nontaxable option in the Other options section to set up a nontaxable service item. This way, the Taxable checkbox won't be checked when you return to the Products and Services page, and customer taxes will be calculated accurately. Please see the screenshot below for your reference. 

 

 

To learn more about adding a sales tax category to your products and services in QBO, please see this article: Add a sales tax category to products and services in QuickBooks Online.

 

On the other hand, I can see how your insights would help in managing your service transactions with QBO. With this, I would encourage you to send suggestions or product recommendations. We'll take them as opportunities to improve the various features of our products. Here's how:

 

  1. Go to the Gear icon.
  2. Select Feedback.
  3. Type in your recommendation in the Share your feedback field.
  4. Click Next.
  5. Follow the on-screen instructions to complete the process. 

 

Also, QuickBooks tracks your sales tax due dates to avoid late returns and extra fees. You may want to check out this article whenever you're ready to file your return and record your tax payment in QBO: File your sales tax return and record sales tax payments in QuickBooks Online.

 

Please feel free to leave a comment below if you have other feature concerns or questions about managing transactions in QBO. I'm always ready to help. Take care, athlaw.

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