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Setup Automated Sales Tax on QuickBooks Online
Setup Automated Sales Tax on QuickBooks Online
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Written by Jennifer Wieth
Updated over a week ago

This article will help you enable Automated Sales Tax (AST) on your QuickBooks Online account. The AST feature will help calculate sales tax automatically for any work you perform in a territory or region.

How to Tell if You Have AST Enabled

In order to tell whether you have AST enabled on your QuickBooks Online account, you first need to login in your account, then navigate to Taxes on the left side navigation. If you see the screen below, then your account already uses AST. If not then proceed to the next steps.

If your screen doesn't display your tax agencies or tax rates, then you will likely see a screen like the one below. If you do, click on the button to "Use Automatic Sales Tax" to start the AST wizard.

The first thing you'll need to do is confirm your physical place of business. This should be the address you use as your primary base of operation.

Once that's complete, you need to indicate which states and municipalities you do business in. This will be used to create tax agencies and help you determine how much tax you owe based on where you perform work.

Once you've populated your tax agencies, the system will prompt you to create an invoice. Click "Create Invoice" and it will take you to the next step of indicating your tax filing requirements.

Next you'll need to specify the tax filing requirements for each tax agency you operate in. The system will show you a simple table indicating common filing requirements based on your monthly liabilities.

Once you specify the filing frequency for each of your tax agencies you're done!

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