QuickBooks' Tax Codes

QuickBooks Online (US SANDBOX)

QuickBooks Online (US sandbox) can accept taxable or non-taxable invoices.

• The Customer (in some cases Asset) can be marked as Taxable or Non-Taxable in QuickBooks Online, this is the switch for the invoice being taxable or not.
  • If the Customer is Non-Taxable**, this switches off ALL taxes for the Invoice.**
    
• Each Product (item)/Service (Line Item) for the Invoice must be marked as Taxable or Non-Taxable in QuickBooks Online for it to show taxes for that product on the invoice.
  • If the Item is Non-Taxable, there will be no tax added to the tax total for that product/service

QuickBooks Online (CANADA SANDBOX)

Customers MUST have a tax code.

Customers can be taxable, but a product (item) can have a 0% tax assigned, making that product (item) non-taxable.

• QuickBooks Online REQUIRES a Tax Code for all Invoices, in our current design.
  
• Every Customer (in some cases Asset) must have a Tax Code assigned, however, there are 3 options for 0% tax in QuickBooks Online.
  
• Line items get assigned THE SAME TAX CODE as the Customer/Asset.
  • If a line Item has a Tax Code assigned to it, the invoice will apply that Tax Code to that line Item, which OVERRIDES the Invoice’s tax setting for that Item.

If the Customer DOES NOT have a Tax Code assigned, QuickBooks Online will REJECT the invoice.

QuickBooks Desktop (US SANDBOX)

Tax code from the Customer is used for the invoice, regardless of the Job (Asset) tax in QuickBooks Desktop.

If the products (items) have a tax code they will be overriden by the customer's tax code in QuickBooks Desktop. If they do not have a tax code, they will show as "Non" TAX in the invoice tax column.

The Tax assigned to the Customer will be the default tax