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Tell QuickBooks Online to use AvaTax for tax calculation

This article applies to:Avalara AvaTax for QuickBooks Online

By default, QuickBooks Online sets up tax agencies in jurisdictions where you collect tax. Tell QuickBooks Online to use AvaTax, and not these tax agencies, to calculate sales tax.

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Important: If you do not follow these steps, tax may be calculated twice: once with QuickBooks Online and once with AvaTax.

 

Steps

  1. In QuickBooks Online, select Taxes > Tell Us Where You Collect Tax.
  2. For each Sales Tax Agency, select Edit.
  3. Change the Start Date for the agency to a date far in the future (for example, 01/01/2199).
    This ensures QuickBooks Online uses only AvaTax to calculate sales tax.

QuickBooks Online is now using only AvaTax to calculate sales tax on invoices.

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What if I see...

"You're not set up to collect sales tax for this sale. If you need to collect tax, go to your settings and add/update the appropriate tax agency."

This message displays when you are creating or editing an invoice and refers only to QuickBooks Online sales tax calculation. As long as you installed the AvaTax app in QuickBooks Online and told AvaTax where your company collects and pays sales tax, you can ignore this message.

After you select Estimate Tax, a line should appear on the invoice indicating AvaTax calculated tax. (The dates in this image are an example of what might appear.)

QB_SalesTaxLine.jpg

If this line doesn't appear to your invoice after estimating tax, make sure you've installed the AvaTax app in QuickBooks Online and have told AvaTax where your company collects and pays sales tax.

 
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