What are the four pieces of information QuickBooks Online uses to calculate sales tax on an invoice?

The calculation of sales tax on an invoice in QuickBooks Online relies on specific information to ensure accuracy. One critical piece of this puzzle is the customer's sales tax status. This status determines whether the customer is tax-exempt, their tax jurisdiction, and the applicable tax rates based on their location or the services/products being sold.

When setting up customers in QuickBooks, it's essential to record their sales tax status because it directly influences the sales tax rate applied to their purchases. If a customer is exempt from sales tax, QuickBooks will not calculate tax, while customers who are subject to sales tax will have the correct rates applied based on their designated status.

The other options, while they pertain to the overall sales process, do not directly contribute to calculating sales tax in the same way. The customer's payment terms might affect when payment is due, the quantity of products or services sold affects pricing, and the location of the sale influences tax rates; however, they must work in conjunction with sales tax status to accurately compute the tax owed on an invoice.