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Resolving QuickBooks 'Based on Location' Tax Mappings Issues
Resolving QuickBooks 'Based on Location' Tax Mappings Issues

How do I avoid 'Based on location' tax problems in QuickBooks.

Timothy Barnes avatar
Written by Timothy Barnes
Updated over a week ago

Quickbooks has a sales tax feature called 'Based on location' that will automatically detect the sales tax they (QuickBooks) believe should have been charged to a customer based on the location of the sale.

Here is a problem you might encounter:
Gazelle is authoritative over QuickBooks when it comes to which taxes are being reported on your QuickBooks invoice. However, if your Gazelle sales tax mappings are not mapped properly this can cause QuickBooks' 'Based on location' feature to quietly override the tax selection on your Gazelle invoice causing headaches and reconciliation issues that will need to be addressed.

Here is what to do about this:
Verify all the taxes you map to in Gazelle go to a 'Custom rate' in QuickBooks not the 'Based on location' tax rates that also appear alongside your customer rates when mapping your Gazelle-QuickBooks taxes. Unfortunately, QuickBooks does not give Gazelle a way to differentiate between the two, but there is a workaround. Here are the steps to take:

Step 1: Temporarily add a hyphen or identifying character in the name of your QuickBooks custom tax rates.

Step 2: Go to Gazelle > Settings > Accounting > Tax Mapping and make sure each of your Gazelle taxes map to one of these custom rates.


Step 3: (Optional) With your taxes properly mapped to your custom rates you will not need to change this again and you can go to QuickBooks > Taxes > Customer Rates > Edit to remove the hyphen or identifying character.

Step 4: Done.



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