Whenever a tax rate changes, you will need to make some changes to QuickBooks. If you use preconfigured rates or are a new user setting up tax, the new rate will be added to your list of taxes automatically.
You need to update your items and existing transactions to use the new rate. In some cases, QuickBooks may have made some of the changes for you. Look at each of these situations and make the indicated changes if they have not already been made.
| Products and Services list | Manually adjust the rate for each item to the new value. |
| Recurring transactions that use the old tax rate | Manually adjust those transactions to use the new rate. |
| Invoices created before the tax change date but future-dated | Manually adjust the rate on the invoice to the new rate. This can happen if the product or service will not be provided until after the date of the tax change. |
| Invoices created on or after the tax change date but back-dated | Manually adjust the rate on the invoice to the new rate. This can happen if you provided goods or services before the date of the tax change but did not issue the invoice at the time of the sale. |
| Outstanding purchase orders created before the tax change date with a corresponding bill created after that date | Manually adjust the rate for those transactions to the new rate. |
| Outstanding estimates created before the tax change date with a corresponding invoice created after that date | Manually adjust the rate for those transactions to the new rate. |
| Combined rates that include the old rate | Manually adjust those rates to use the new rate. |
For detailed information on how the tax rate change affects you, visit the website for your tax agency.