Apply Sales Taxes After Discount on Invoice
Right now Sales Tax is applied on invoices before discounts. That seems illegal. We would like the Sales Tax applied after the customer is given a discount. Ca you at a minimum make it an option to apply a discount before Sales Tax?
David
shared this idea
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Sheila Miramontes
commented
I was just about to post this same idea!! I wish I could vote for this 1000 times, I have expressed this to QB development many times!
The legality of it depends on the state's regulation for what point in the transaction the sales tax is applied, as well as what part of the transaction is taxable (i.e. NC charges tax on shipping). I am a bookkeeper for a FL business, and in the state of FL, tax is based AFTER discounts are applied to the Invoice/Sales Receipt. We use QBO on the web browser (don't know if this is issue on mobile app), and we manually have to toggle the Discount Field with the automated Sales Tax field on every sale, or it charges tax on the pre-discounted amount. That is not legal in FL, and likely is not in other states.
QBO, PLEASE FIX THIS!! I have personally reported this for 2 years now. YOUR SALES TAX SYSTEM SHOULD AUTOMATICALLY KNOW EACH STATE'S TAXING REQUIREMENTS SINCE YOU ALREADY HAVE REAL-TIME RATES IN THERE. THANK YOU!!