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Almost all states are accrual based for sales taxes, that means you owe the sales tax on sales whether you collect it or not.
If you are talking about some other tax please specify
Almost all states are accrual based for sales taxes, that means you owe the sales tax on sales whether you collect it or not.
If you are talking about some other tax please specify
Sorry I should've posted this in the UK community but I guess the same thing applies there too. Thank you.
Did you ever get an answer on this?
Thanks for joining the thread, @PanettaUK.
If you're on an accrual basis, you'll collect sales tax based on the invoices you've created for customers. This means that even if the invoices are not paid by your customers yet, the tax return will include these unpaid sales invoices.
You may want to change your reporting method to cash based. But before that, make sure consult your accountant for professional advise. Then follow these steps below:
You can also add custom sales tax after updating your tax center setup.
In addition, you may want to check out this article about tax preference and see how the system calculates taxes: Set up and use VAT in QuickBooks Online. This covers steps checking how much you owe and file your VAT return.
As always, feel free to reply below if you have other questions. I'm always around to help. More power to your business!
Sales tax on quickbooks online
My sales tax is on Cash basis and I am still getting in the report unpaid invoices.
???
Hello, Rodon.
On a Cash basis, your sales transaction is subject to sales tax reporting based on the date it was paid.
Likewise, If the invoice showing as open and unpaid on the system, do you have any credits applied to this?
We can also double check your accounting method, if its set to cash basis. Go to the Cog > Account & settings > Advanced > Accounting.
I'm also adding this article for future reference: VAT: Getting Started.
In addition, here's a list of frequent VAT codes created for you by QuickBooks Online: VAT codes.
Please leave a reply on this thread if you need more help with VAT in QuickBooks. Thanks.
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