Manage sales tax payments

Learn how to record, adjust and delete sales tax payments in the tax centre.

The tax centre in QuickBooks has what you need to handle sales tax. You can record payments for different time periods and make adjustments as needed. In this article, you’ll learn how to record, adjust, and delete sales tax payments in the tax centre.

Here's how to manage sales tax payments and other tasks in the tax centre.

Note: If you don't see the features mentioned below, you may be using the tax feature. Learn more about setting up and using sales tax.

In this article, you'll learn how to:

• Get a sales tax liability report
• Record a sales tax payment
• Adjust a sales tax payment
• Delete a sales tax payment

Review sales tax reports

Get a sales tax liability report

1. Go to Reports and select Standard reports (Take me there).
2. In the Type report name here ▼ dropdown, search Taxable sales summary and select it.
   Note: The name of this report may vary based on the location of your QuickBooks Online file.

The report shows each tax agency, the taxable amount of sales, and payments.

See all of your sales tax payments

1. Go to All apps , select Sales Tax, then select Overview (Take me there).
2. To view the list of payments, select Payments tab and select View.
3. Select Done to close the window.

Manage sales tax payments

Record a sales tax payment

1. Go to All apps , select Sales Tax, then select Overview (Take me there).
2. Select Filings tab, locate the tax filing from the Filed section.
3. Select Record payment.
   Note: Based on the status of your return, this option may be appear in the relevant ▼ dropdown.
4. From the Payment From ▼ dropdown, select the account you're making the payment from.
5. Select the Payment Date.
6. Select the outstanding tax payment and adjust the amount as needed.
7. Select Add interest/penalty if you need to add one to the filing, then follow the next steps.
8. Select Record payment.

Adjust a sales tax payment

You can make an adjustment while filing your taxes.  

Use this when you need to decrease or increase the amount of sales tax payment for things like credits, discounts, fines, interest, penalties, and corrections for rounding adjustments.

Important: If the Balance due is $0.00 or less for the given tax period, the option to enter an adjustment for the sales tax return won't show.

1. Go to All apps , select Sales Tax, then select Overview (Take me there).
2. In the Fillings tab, select Prepare return.
3. Select the date from the End date and Filing date fields.
4. In the Prepare < tax agency name > return or Prepare GST/HST return page, select Adjust.
5. Select an account to track the adjustment from the Adjustment account ▼ dropdown. Don't select the Sales Tax Payable account. Instead, use the following:
   • Credit or applying a discount: Select an income account, such as Other Income.
   • Fine, penalty, or interest due: Select an expense account.
   • Rounding adjustment: Select an income account for negative differences, or an expense account for positive ones.
6. Enter the amount in the Adjustment amount field. You can enter a positive or negative amount.
7. Enter the reason for the adjustment in the Memo field, if needed, then select Save.
8. Select Mark as filed, then follow the prompts.

Note: Sales Tax can get complicated. If you have questions, reach out to your accountant or tax agency.

Delete a sales tax payment

1. Go to All apps , select Sales Tax, then select Overview (Take me there).
2. Select the Payments tab.
3. Select Delete from the Action column ▼ dropdown, then select Yes to confirm.
   Tip: Select the View ▼ dropdown to see this option.

Note: After you delete a payment, the page doesn't refresh automatically.
Leave and come back to the Sales Tax overview page. The payment shouldn't appear anymore.

Related links

• Learn more about how cash and accrual accounting affect sales tax.