You may be required to collect taxes for certain goods and services you offer. QuickBooks Desktop helps you keep an accurate record of these taxes so you can easily monitor and remit them to the appropriate tax collecting agency.
This article is part of a series on Sales Tax. It covers the usual sales tax workflow in QuickBooks Desktop.
It also helps you complete other sales tax-related tasks.
If you encounter problems while working on your sales tax, see Resolve common sales tax issues.
If you have inadvertently charged sales tax for a tax exempt customer, you can process a refund for them using one of the options outlined below. Contact your accounting professional to know which option works best for your business.
This option requires that you know your Sales Tax up to the point when you started tracking Sales Tax accurately. You can get this from the Tax Agency report.
- Select Sales Tax then Adjust Sales Tax Due.
- In the Sales Tax Adjustment window, set the Adjustment Date to the date where you want to start tracking sales tax.
- From the Tax Agency drop-down, choose the sales tax agency you pay sales tax to.
- Set the Adjustment Account. Note that it should be an Expense account as you will be reducing sales tax.
- In the Adjustment box, make sure Decrease Sales Tax Line is selected, then enter the amount of Sales Tax to be adjusted. (This will be the value you have from the Tax Agency report.)
- In the Memo field, enter a note about the adjustment. Example: Adjustment to zero out the sales tax.
- Select OK to finish.
- Pay sales tax.
- From the Sales Tax menu, select File Sales Tax.
- From the Tax Agency drop-down, choose the correct tax agency.
- The Total Tax Due balance should be zero as the Sales Tax Due and Sales Tax Adjustment zero out each other.
- Select File Return.
- Check your Tax Agency Report and the sales tax up to that point will now be zero.