Question

No Sales Tax on Labor

Forum|Forum|2 years ago
October 29, 2023
1 reply
5 views

Using QBO. Client has entered estimates and invoices. Labor is not taxable and is not checked. Sales tax is being calculated correctly on the remaining taxable items. The estimates and invoices are correctly entered into QBO.

When we print/download/send this to customer, the line item for labor is checked as taxable, while the calculation of the tax is not including the labor as the sales tax amount agrees to the estimate or invoice. How do we not have the "T" next to labor amount when it should not be there on the printed form. What is driving this?

QuickBooks Online

I

IrizA

Level 2

Hi there, Kathy. Let me explain and assist you in editing it.

In QuickBooks, it is important to make sure that the said service item is taxable or not taxable. In your case, the service item is saved with a taxable status.

You can follow these steps to change it:

Go to Sales, located on the left navigation panel.
Under Products and services, find the item that you wanted to change into a non-taxable item. Then click Edit.
Look for Sales tax. If it's taxable, you can change it to non-taxable by clicking the Edit sales tax.
In the Other options, you can choose whether you want it to be Taxable or Nontaxable.
Click Save and close.

Now, you can see in your report that the service item is no longer taxable.

When printing your estimates and invoices, you can use this article as a guide to do it: Download and Save Sales Forms and Statements

Feel free to reach out if you have other concern/s. I'm just here to assist you. Take Care!

K

kathyemersoncpaAuthor

This does not resolve the issue. The Labor Item is set up correctly. The Estimate and the Invoice are showing on screen correctly. When they are printed, the labor item has the tax box checked, as though tax is being calculated when it is not.

R

RCV

QuickBooks Team

Thanks for coming back. We can perform some troubleshooting steps together to resolve your issue about printing invoices with the correct tax status in QuickBooks Online (QBO), kathyemersoncpa.

Aside from performing the recommended steps provided by my colleague. We can log in to your account using an incognito browser. Private browser prevents saving cache and cookies that sometimes cause errors when running frequently visited websites. Here are the useful shortcut keys you can use to access one:

Ctrl+ Shift + N for Google Chrome
Ctrl + Shift + P for Mozilla Firefox and Microsoft Edge
Command + Shift + N for Safari

Then, try printing the invoice again. Here's how:

In the left navigation bar, go to Sales, then Invoices.
Find an invoice you want to print.
Under its ACTION column, use your Drop-Down Arrow (▼) icon.
Select Print.

If it works, return to your default browser and clear its cache. Every so often the cache becomes overwhelmed with older data which can potentially cause viewing and performance issues. Clearing it will refresh the system, and you'll be able to work with a clean slate. Switching to another compatible one to help rectify the issue.

However, if you're still experiencing the same issues, I recommend reaching out to our support team so they can take a look at this further and be able to investigate the root cause behind such behavior. They have the tools to pull up your account in a secure environment.

Additionally, you can use the Sales Tax Liability report to check the amount of sales tax you owe. To run and customize this report, you can find more information in this article: Check how much sales tax you owe in QuickBooks Online.

As always, feel free to read the topics from our help articles in case you need tips and related links while working with QuickBooks in the future.

If you have any further questions regarding invoices and sales taxes in QBO, feel free to reach out. I'll be here to help you out.

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