sales tax needs to be calculated on subtotal
ktrow
Member Posts: 9
I just recreated an invoice from Quckbooks Self-Employed Online and the sales tax is calculated as $0.02 higher since the sales tax seems to be calculated on each line item separately rather than the subtotal. I have already sent the invoice from QB to the customer, so I need to have them consistent. I cannot be sure as to what method is most accurate or required by tax agencies, but I would expect that sales tax needs to be calculated on the subtotal. Could anyone please clarify and let me know if this can be changed anywhere in preferences?
1
Comments
Hey @ktrow
When it comes to tax rounding at Wave, this process is completed on a line-item level. What this means is that each product line will calculate the tax, round to 2 decimal places, then do the next product line. At the end, it will add up all the line item tax calculations and plug that in as a total tax in your invoice. Unfortunately, there is no way around that in our software at this time.
As a potential temporary workaround, feel free to add/discount a new invoice item for $0.01 to charge the right amount and mark it as an adjustment entry for the time being.
I second this users frustration. This is a flawed way of calculating sales tax. As I demonstrated to the support team if I have bunch widgets under the sales tax threshold it will calculate no tax at all.
This really should be changed to calculate sales tax from the subtotal of taxable items.
Hey @PreciseTemp! Thanks for leaving your feedback here in the Community. I can see that you'd discussed this with our support team, and I do apologize for the inconvenience at present around this workflow.