Skip to main content
Avalara Help Center

Why is AvaTax for QuickBooks Online and QuickBooks Online calculating tax at the same time?

Overview

You are trying to use AvaTax for QuickBooks Online, but still, receive tax calculation from QuickBooks Online.

Intuit recently updated their automated sales tax solution (AST) which has caused some issues with other third-party tax providers, such as AvaTax.  These issues can range from items not taxing properly to duplicated sales tax due to Intuit's AST solution running simultaneously with AvaTax.  

To mitigate this problem and allow AvaTax for QuickBooks Online users to continue to process transactions, irrespective of the tax source, all sales tax transactions will now be reported to AvaTax.  Thus, sales tax calculated by QuickBooks Online will now be a part of your AvaTax report.

To disable QuickBooks Online AST service and continue using AvaTax calculated Sales Tax on your sales invoices, please follow the following steps.

Environment

AvaTax for QuickBooks Online

Resolution

  • Remove Sales Tax Agencies in QuickBooks Online
    • On the left side tab, select Taxes > Sales tax settings
    • For each Sales Tax Agency click on the down arrow under ACTION and click Edit and change the Start Date for the agency to a start date in the future (e.g. 01/01/2199).
  • Mark Products and Services as taxable
    • On the left side tab, select Taxes > Products and Services
    • For each product and service click Edit, then ensure the IsTaxable field is checked.