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EU sales tax

Hello, 

I need help !

In France, the sales tax is 20%.  I input the invoice with this rate.

once paid by client, it becomes a Sales tax Payable - right ? 

then here comes the hook ..

 

When we pay bills - including the VAT tax - like Joe elect ..sales tax 100.00 included..

French govt. makes me use this 100.00 tax paid to Joe..

and set it against the Tax Payable ..so we never pay the full amount because there are always these ( thus 70,000 in payables, & 49,000 in credits) 

expense credits we have to use..

I have been trying to G/L entry this adjustment & now it created this "other " account, which does NOT appear on my chart of accounts.

Please help me fix this -

Thank you

Anne

Solved
Best answer 09-06-2019

Accepted Solutions
QuickBooks Team

Re: EU sales tax

Good day to you, Anne.

 

The steps shared by JenoP above is correct. Although, in adjusting sales tax, you can only choose either Expense or Income Account.

 

Also, I'd highly recommend consulting to an accounting expert to guide you with this. They're the best to reach out especially with this kind of concerns.

 

I'm always here to help. Just leave a reply anytime.

View solution in original post

7 Comments
QuickBooks Team

Re: EU sales tax

Hi there, Anne.

 

Thanks for sharing the screenshot. It's possible that the adjustments you've made are grouped under the "Other" line in your report.

 

Click the amount under the Sales Tax Payable As of Aug 31, 19 column. It will show you the transactions or source of the amounts posted under "Other". 

 

I would also recommend consulting a tax professional on how to record the credits to make sure your sales tax record is accurate. 

 

Visit us again if you need more help. 

Not applicable

Re: EU sales tax

Bonjour, 

and thank you.

but i think, the entries i need to make are not allowed in QB ? 

i need to use the amount we paid in tax ( credit VAT paid)

and debit the sales tax payable ( because, we are not making a full payment to the govt.) 

 

is there an easy way to do this ? 

i am getting confused - this is not normal outside of France ( ha ha ) thus they do not follow standard acct. rules ..

merci 

Anne

QuickBooks Team

Re: EU sales tax

Hi again, Anne.

 

Adjusting sales tax is allowed in QuickBooks Desktop. Instead of creating a journal entry, you can record the adjustment in the Sales Tax Center. Here's how:

 

  1. Go to the Vendor menu, look for Sales Tax, and then click Adjust Sales Tax.
  2. Enter all required information including the Adjustment Account.
  3. Select the Reduce Sales Tax By option. 
  4. Enter the amount of the credit and click OK.

Here's an article for additional info: Process Sales Tax Adjustment.

 

Please continue to add a reply below if you have follow-up questions. 

Not applicable

Re: EU sales tax

Jeno , 

Thank you for the advice, 

now it pops up 

WARNING !

You cannot use the Sales Tax Payable account to adjust the amount of sales tax due. Select a different adjustment account.

 

but its the Payable that i need to adjust ..

the software blocks me, because it does not know how crazy the french are ..& i have to reduce the payable with a credit , from my expenses ..

OR 

do i have to re input all the invoices like this :

joe electic ......................................expense 100.00

joe electic tax ................................tax paid ...10.00 against the sales tax payable

cash..........................................................................................................................cash out for 110.00

 

i am going crazy ...i don't remember this stuff in class ! ha ha 

Anne

Not applicable

Re: EU sales tax

well this is my 3rd strike .

it seems, any time i try to adjust the Sales Tax payable acct. it blocks me .

there is no way to make an G/L entry on this account ? 

or is this a software safety ? 

when i learned of this "accounting " practice, i was shocked, you re use this money this way ..

if not possible, * ty for trying 

anne 

QuickBooks Team

Re: EU sales tax

Good day to you, Anne.

 

The steps shared by JenoP above is correct. Although, in adjusting sales tax, you can only choose either Expense or Income Account.

 

Also, I'd highly recommend consulting to an accounting expert to guide you with this. They're the best to reach out especially with this kind of concerns.

 

I'm always here to help. Just leave a reply anytime.

View solution in original post

Not applicable

Re: EU sales tax

Bonjour, 

& Thanks to both of you.

This french practice is not standard acct. thus why its not possible to hit the Taxes Payable.

the French accountants,use a govt. required software, so this entry is not a problem for them.

i will have to find a solution using a different method .

merci beaucoup 

anne

:)