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drew-vanegmond
Level 1

I purchased new vehicle and paid tax on it at MTO, how do i set the tax on it the purchase to be the full amount?

 
1 Comment 1
AddieC
QuickBooks Team

I purchased new vehicle and paid tax on it at MTO, how do i set the tax on it the purchase to be the full amount?

Hi there, 

 

Making a new vehicle purchase is such an exciting process! If it's for your business, it's important to record this expense in your books. QuickBooks Online makes it easy to enter your expenses, and you can include taxes to ensure the transaction is recorded accurately. 

 

If you're trying to include the tax when entering your vehicle expense, you'll simply select a tax code in the Sales Tax column. If you don't see the appropriate sales tax code from the drop-down menu, follow the steps here to add a new tax code: 

 

1. Click the Taxes tab on the left navigation menu. 

2. Select Manage Sales Tax.

3. Click Add Tax.

 

Next, you'll select this tax code when entering your expense. If you're not sure how to enter the expense in QBO, check out this comprehensive article: Enter, edit, or delete expenses in QuickBooks Online.

 

You can record your expense as Inclusive or Exclusive of tax, depending on how your receipt is displayed and which method is simpler for your data entry. Simply select the option that best applies to you above the line item section of your expense creation page. Inclusive of tax means you're entering the total amount of your purchase, and QBO will calculate how much of that total is taxes (based on the tax rate you select). Exclusive of tax means you'll enter the expense total before taxes, and QBO will tack on the tax at the end.

 

If you're not quite sure how to categorize your expense transaction, I recommend reaching out to your accountant to get their advice. If you're not yet connected to an accountant, you can find one in your area here: Find an Accountant.  

 

I hope this helps get you back on track. If you have any other questions, please don't hesitate to reach out to our tech support team

 

Cheers. 

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