Manage sales tax payments

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

The tax center 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 center.

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

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

Review sales tax reports

Get a sales tax liability report

1. Follow this link to complete the steps in product
2. Under the Related Tasks list, select View sales tax liability report.

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

See all of your tax payments

1. Follow this link to complete the steps in product
2. The list of recorded payments is displayed in Recent Sales Tax Payments section.

Manage sales tax payments

Record a sales tax payment

1. Follow this link to complete the steps in product
2. From the Sales Tax Owed list, select the tax agency you're recording the payment for, then select Record Tax Payment.
3. From the Bank Account dropdown, select the account you're making the payment from.
4. Select the Payment Date.
5. Enter the tax payment amount in the Tax Payment field.
6. When you're ready, select Record Tax Payment.
7. If you need to print a check for the payment, check the Print a Check checkbox and then select Record Payment and Print Check.

Adjust a sales tax payment

If you need to make an adjustment, select Make Adjustment when you record a sales tax payment. 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.

1. Enter the adjustment amount and reason for the adjustment. You can enter a positive or negative amount.
2. Select an account to track the adjustment. 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.

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

Delete a sales tax payment

1. Follow this link to complete the steps in product
2. From the Recent Sales Tax Payments list, select the payment you want to delete, then select Delete Payment.
3. Select Yes to confirm.

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

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

Related links

Troubleshoot sales tax payment issues