Learn how to file your sales tax return and record your sales tax payment in QuickBooks Online.
QuickBooks Online tracks your payment due dates in one place so you can avoid late returns and extra fees. Once it’s time to file, you can review what you owe first to make sure all the numbers look good. Then, you can use your up-to-date QuickBooks info to fill out your sales tax form.
After filing, you can record your new sales tax payment in QuickBooks so your sales tax payable stays up to date.
If you still use manual sales tax, here’s how to manage sales tax payments in QuickBooks Online.
In this article, you'll learn how to:
- Review what you owe
- File your return with the right tax agency
- Record your sales tax payment in QuickBooks
- Check your filing status
Step 1: Review what you owe
If you haven’t already, make sure everything is correct before you file.
- Go to Taxes and select Sales tax (Take me there).
- Select the appropriate option from the Filing period dropdown.
- Update the dates in the End date and Filing date fields.
- If you need to add an adjustment for things like credits, discounts, or corrections, select Adjust for the item in the list that you want to add as an adjustment. Fill up the adjustment details in the form, and select Save. The adjusted value gets updated in your return.
- 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: If you need a detailed look at what you owe, run your GST liability report for the same sales tax period. This is helpful if you want to review your taxable and nontaxable invoices, receipts, and other transactions.
The sales tax report 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 the right tax agency
After you review your sales tax, you can e-file your return on your tax agency’s website, or file by mail.
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.
- Fill out your sales tax return form. Refer to the gross sales, taxable sales, and sales tax due amounts you took note of in Step 1.
- Finish filing your sales tax return.
Can I still e-file right in QuickBooks?
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 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
Once you're done filing, it's time to keep your sales tax info in QuickBooks up to date. Here's how to manually record your sales tax payment to zero out your sales tax payable.
- Go to Taxes and select Sales tax (Take me there).
- Find the return you just filed, select the View summary dropdown ▼ and 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.
You can see 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.