Hi there, @larrysrsp. I can share some insights about recording sales tax payments. In QuickBooks Online, the tax on your purchases is paid and filed by your vendor. You can enter the total amount paid including sales taxes. Let me show you how. Go to Taxes, then select Sales tax . From the Sales Tax Owed list, select the tax agency you're recording the payment for, then select Record Tax Payment. From the Bank Account dropdown, select the account you're making the payment from. Tap the Payment Date. Enter the tax payment amount in the Tax Payment field. When you're ready, select Record Tax Payment.You can also read this resource to learn more about sales tax in QuickBooks Online and manage sales tax payments. Otherwise, you can consult your accountant for further guidance. They can also provide the best way on how to handle and record sales tax payments in QuickBooks. This is to ensure that your book is balanced and accurate. We’d be happy to help with any other questions or concerns about sales tax. Just drop a comment below. We’ll be here!

Question

How do I record sales tax that I pay for a purchase when I create a bill for my credit card account

Forum|Forum|3 years ago
February 9, 2023
2 replies
44 views

No text available

QuickBooks Online

A

AbegailS_

Level 6

Hi there, @larrysrsp.

I can share some insights about recording sales tax payments.

In QuickBooks Online, the tax on your purchases is paid and filed by your vendor. You can enter the total amount paid including sales taxes. Let me show you how.

Go to Taxes, then select Sales tax .
From the Sales Tax Owed list, select the tax agency you're recording the payment for, then select Record Tax Payment.
From the Bank Account dropdown, select the account you're making the payment from.
Tap the Payment Date.
Enter the tax payment amount in the Tax Payment field.
When you're ready, select Record Tax Payment.

You can also read this resource to learn more about sales tax in QuickBooks Online and manage sales tax payments.

Otherwise, you can consult your accountant for further guidance. They can also provide the best way on how to handle and record sales tax payments in QuickBooks. This is to ensure that your book is balanced and accurate.

We’d be happy to help with any other questions or concerns about sales tax. Just drop a comment below. We’ll be here!

Rainflurry

Level 11

@larrysrsp

Include it in the cost of the expense. There's no need to separate it out.

R

Royallube

when i purchase a meal for example and there is sales tax when i enter the expense do i seperate it ?

G

GenmarieM

QuickBooks Team

Recording sales tax on purchases will depend on how it was billed, Royal.

If the sales tax was billed separately from the original expense, you'll need to create a separate service item with zero amount to manually enter sales tax amount when recording the expense.

Here's how:

Go to the Gear icon, then click Products and services.
Hit New and enter a name for your service item.
Please uncheck the box for I sell this product/service to my customers and check the I purchase this product/service from a vendor box.
Once done, click Save and close.

On the other hand, if the sales tax was already included on the total amount of the purchased meal, there's no need to record it separately.

For your future reference, you can generate expense reports to track your business's spending.

We also have specialists who are available to help you simplify tasks in QuickBooks through the QuickBooks Live Expert Assisted service, providing personalized guidance to keep your finances organized.

Come back to this post if you have other questions or concerns.

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