QuickBooks changed how it handles automated sales tax. We updated MaidCentral to send invoice data the way QuickBooks now expects. Two features do this. One controls the tax code on each line. The other controls the address QuickBooks uses to pick the rate.
QuickBooks Accurate Sales Tax (QBO Recommended)
Today, MaidCentral puts a "TAX" shortcut code at the invoice level, and QuickBooks automated sales tax no longer honors that code. With this feature on:
Each line gets a real tax code, taken from the taxable setting on the item in your QuickBooks item list.
The invoice-level shortcut code is gone. QuickBooks works out the tax itself, which is what Intuit now requires.
Canadian invoices send your real GST/HST/PST/Exempt codes instead of US-only codes.
Canadian customers who are marked exempt get the exempt code on every line, even when the item itself is taxable.
For US customers, exemptions come from the tax-exempt setting on the customer in QuickBooks. Confirm that the setting is correct for any customer who should not be taxed.
Works for US and Canadian companies.
QuickBooks Tax at Service Address (US only)
Today, QuickBooks picks the rate from the address on file, which can be the billing address or even your own office. With this feature on:
The invoice carries the address of the home that was cleaned, in both the Ship From and Ship To fields. US states split between origin-based and destination-based rules, so both fields have to say the same thing to be correct either way.
The customer pays the rate for their own city and county.
Ship To prints on the invoice. If your billing address and service address differ, the invoice will now show the service address there. This is expected.
Does nothing for Canadian companies. Canada calculates tax from tax codes, not addresses.
How they relate
The QuickBooks: Tax by Service Address feature requires the QuickBooks: Accurate Sales Tax feature to be enabled. It won't do anything until the first feature is on as well. The recommended setup is both features on.
How to enable these features
To enable these features, go to Company > Settings > General > Features.
QuickBooks Accurate Sales Tax (QBO Recommended)
QuickBooks Tax at Service Address (US only)
New MaidCentral companies get both turned on automatically. Existing companies can turn them on themselves.
What to expect after turning them on
Turning these on can change tax amounts on new invoices.
Review your first few invoices with your accountant to confirm everything looks right.
Nothing changes on old invoices.
If you’re running into any issues with sales tax, check out our Sales Tax guide!
FAQ
I don’t charge sales tax. Does it matter if these features are on?
If you don't charge sales tax, it won’t make a difference whether these features are on or off.