Manage sales tax payments in QuickBooks Online

Learn how to record, adjust and delete sales tax payments in the sales tax Center.

The sales tax Center has everything you need to handle sales tax in QuickBooks. You can run reports for your sales tax liabilities, record or edit sales tax payments, and see your sales tax owed for different time periods.

Here’s how to manage sales tax payments and other tasks in the sales tax Center.

Note: If you don’t see the features mentioned below, you may be using the Auto sales tax feature. Learn more about setting up and using Automated sales tax.

Review sales tax reports #

Get a sales tax liability report #

  1. Go to the Taxes menu.
  2. Select View Report.

The report shows each tax agency, the taxable amount of sales, and the tax owed.

See all of your sales tax payments #

  1. Go to the Taxes menu.
  2. Under Recent sales tax Payments, select View All.

This opens a transaction report that lists all your sales tax payments. You can adjust the date range or select Customize to further refine the report.

Manage sales tax payments #

Record a sales tax payment #

  1. Go to the Taxes menu.
  2. From the sales tax Owed list, select and highlight the tax agency you’re recording the payment for.
  3. Select Record payment.
  4. From the Bank Account dropdown, select the account you’re making the payment from.
  5. Select the payment date and tax ending tax period ending dates from the dropdowns.
  6. Enter the tax payment amount in the Tax Payment field.

  1. When you’re ready, select Record Tax Payment. If you need to print a check for the payment, check the Print a Check checkbox and then select Record Payment and Print Check.

Adjust a sales tax payment #

If you need to make an adjustment, select and check the Make Adjustment box when you record a sales tax payment. Use this when you need to decrease or increase the amount of sales tax owed for things like credits, discounts, fines, interest, penalties, and corrections for rounding errors.

Enter the adjustment amount and reason for the adjustment. You can enter a positive or negative amount.

Then select an account to track the adjustment. Don’t select the sales tax Payable account. Instead, use the following:

  • Credit or applying a discount: Select an income account, such as Other Income.
  • Fine, penalty, or interest due: Select an expense account.
  • Rounding error: Select an income account for negative errors, or an expense account for positive ones.
Note: sales tax can get complicated. If you have questions, reach out to your accountant or tax agency.

Delete a payment #

  1. Go to the Taxes menu.
  2. Look for and select to highlight the payment you want to delete.
  3. Select Delete Payment. Then select Yes to confirm.

Note: After you delete a payment, the page doesn’t refresh automatically.
Leave and come back to the Taxes menu. The payment shouldn’t appear anymore.

Delete a sales tax payment #

  1. Go to the Taxes menu.
  2. Look for and select to highlight the payment you want to delete.
  3. Select Delete Payment. Then select Yes to confirm.

Troubleshoot sales tax payment issues #

Troubleshoot sales tax payment issues

Learn more about how cash and accrual accounting affect sales tax.

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