I bought a phone and was charged 100% of the tax up front. The rest will follow in payments. I cannot seem to make an expense record for 100% tax. How do I do this?

Hi pearson-m,

Welcome to the Community. It's essential to correctly record your transactions in order to keep your books balance. QuickBooks Online is a great program that offers the ability to simply track your sales and expenses. I'd glad to point you in the right direction to make an expense record for 100 percent tax. 

I'd encourage you to refer to the following steps to record the expense.

1. Click on Bookkeeping on the left navigation menu.
2. Select Transactions and then Expenses.
3. Click on New transaction and then Expense.
4. Under Account details, on the first line, in the Account column, select an expense account related to the imported goods.
5. Enter 0.01 in the Amount column.
6. Select a tax code that represents all tax types paid, in this case the GST.
7. On the second line, in the Account column, select the same account.
8. Enter -0.01 in the Amount column.
9. Select “Out of scope” for the tax code.
10. Edit the fields below the Subtotal "GST @ 5% on 0.01" to reflect the amount of tax paid.
11. Select Save.

The expense of 100 percent tax will be recorded in your books.

Let me know if you have any questions, I'll be happy to help.

Many thanks! I appreciate your help. 
M

We're happy to be of assistance pearson-m,

If you have any other questions, feel free to reach out here.

Hello! I have the same problem. 

I tried to follow these steps but I couldn't find them. It seems like the software may have been updated since those steps were provided.

I was charged upfront the taxes, in my case were the GST (5%) and the PST (7%).

I was charged $209.99 that were 100% taxes, and then the other amount was tax-free and split into monthly payments. How do I categorize this $209.99?

Thank you!

Hi there NoellePK,

Thanks for reaching out about entering your tax-only expense. QuickBooks Online is a great tool able to help you keep track of tax on sales and expenses so you know the amount to file. I can provide some information about entering tax-only expenses. 

To enter a tax-only expense, you can follow this guide to create a tax-only expense for taxes on imported goods. It's meant for goods that you pay taxes on for border purposes, but it's still a tax-only expense.

If you have any other questions, feel free to reach out here.

It worked! Thank you so much!

Hello again NoellePK,

I'm happy that worked. If you have any other questions, feel free to reach out here.