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File your sales tax return and record sales tax payments in QuickBooks Online

by Intuit•2117• Updated 3 weeks ago

Learn how to file your sales tax return and record your sales tax payment in QuickBooks Online.

QuickBooks Online tracks your sales tax deadlines and helps you prepare your return. After you review your return in QuickBooks, you must file it directly with your tax agency. Once filed, record the payment in QuickBooks to update your sales tax payable account.

Here’s how to manage sales tax payments in QuickBooks Online.

For a better experience, open this article in QuickBooks Online. Launch side-by-side view

In this article, you'll learn how to:

Review what you owe
File your return with your tax agency
Record your sales tax payment in QuickBooks
Check your filing status

Step 1: Review what you owe

Before you file, review what you owe to ensure all numbers are correct. Make sure all sales transactions for the filing period are entered and categorized.

Go to All apps , select Sales Tax, then select Overview (Take me there).
Check which return is due this month, then select Prepare return.
Select the appropriate option from the Filing period ▼ dropdown.
Update the dates in the End date and Filing date fields.
To add an adjustment (for credits, discounts, or corrections), select Adjust for the relevant item. Fill out the adjustment details and select Save.
Take note of your gross sales, taxable sales, sales tax due, and adjustment amount (if you added one). You’ll need these numbers later when you fill out your sales tax return form.
After you have done with updating the details in the returns, select Mark as filed.
Select Continue.

Note: To see a detailed look at what you owe, run your Sales Tax Liability report for the same sales tax period. The report's details will change depending on the province you select. For example, if you select sales tax for Quebec, then you can select the GST/QST Detail report.

Step 2: File your return with your tax agency

After you review your return in QuickBooks, file it directly with your tax agency.

Most provinces encourage businesses to e-file. But if you can’t file online, you can check your tax agency’s website for more info on how to mail your return.

Go to your tax agency’s website to file your return online. If you haven’t yet, you might have to sign up for your province's e-filing service.
Use the gross sales, taxable sales, and sales tax due amounts from QuickBooks Online to fill out your sales tax return form.
Finish filing your sales tax return on your agency's website.

Can I still e-file inside of QuickBooks Online?

As of April 21, 2020, QuickBooks Online no longer supports e-filing sales tax payments. But don’t worry, it’s just as easy to e-file right on your tax agency’s website. Moving forward, you can manually enter your sales tax payment in QuickBooks right after you file to keep your sales tax info up-to-date.

Step 3: Record your sales tax payment in QuickBooks

After you file and pay your taxes to the agency, record that payment in QuickBooks. This zeroes out your sales tax payable and keeps your records up to date.

Find the return you just filed, then select Record payment.
Select the bank account from the Payment From ▼ dropdown.
Select Payment Date.
Then enter the amount in the Payment Amount field.
If you need to add any interest or penalty, select Add interest/penalty. Fill up the details in the Add interest/penalty form, and select Save.
After you have done with adding the information, select Record payment.

The payment is recorded in QuickBooks, and your sales tax payable balance is updated. You can view your payment details under the Payments tab.

Step 4: Check your filing status

If you filed online, go to your tax agency's website to check your return’s filing status. If you filed by mail, you can also call your tax agency directly to get an update on your return.