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Adjust sales tax in QuickBooks Online

by Intuit Updated 5 months ago

Sales tax adjustments allow you to fine-tune your sales tax filings in QuickBooks Online.

Note: If one of the amounts needs to be changed on your sales tax return, the best way to resolve incorrect amounts on your sales tax return is to figure out which transactions may be missing. By doing this, you'll also correct the associated reports.

If you still need to adjust your return, you can do this easily by following the steps below.

Adjust sales tax

  1. Go to Taxes, select Sales tax (Take me there), and select Prepare return under the Filings section.
  2. On the Prepare return page, select the Adjust link on the far right of the line you wish to adjust.
  3. Enter the amount of tax you would like to add to the line (to reduce the line, enter a negative number).
  4. Select your adjustment account. This may be an income account for tax credits, or if your Tax Payable account is correct, you can select the Payable account to adjust the return without affecting your Chart of Accounts.
    Note: We recommend consulting an accounting professional to ensure correctness on this step.
  5. Select Save to save the adjustment.

What happens after you enter a sales tax adjustment?

When you enter a sales tax adjustment, QuickBooks Online automatically adds a general journal entry to show the adjustment. The next time you file your GST/HST, PST, or QST, the adjustment is included in the File Sales Tax window. QuickBooks Online includes the adjustment on the sales tax line that you chose in the Sales Tax Adjustment window.

The adjustment is shown as a general journal entry in the related section of the GST/HST or PST Detail report.

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