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File and pay sales tax in QuickBooks Online

by Intuit•31• Updated 2 weeks ago

Learn how to file, pay, and record your sales tax in QuickBooks Online.

Use QuickBooks to file, pay, and record your sales tax. This helps you make sure you comply with tax regulations, so you can focus more on your business.

Before you get started, make sure you have:

File your sales tax

The sales tax e-file service is available in six states. We’ll be adding more states soon.

StateTax period
ArkansasMonthly and quarterly
IndianaMonthly and quarterly
IowaMonthly
Kentucky Monthly and quarterly
MinnesotaMonthly and quarterly
NebraskaMonthly and quarterly
North CarolinaMonthly and quarterly
Rhode IslandMonthly and quarterly
VermontMonthly and quarterly
West VirginiaMonthly and quarterly
WisconsinMonthly and quarterly

Follow these steps to file your sales tax:

  1. All apps A bunch of numbers and letters on a tile wall.
  2. From the Action column, select File return.
  3. Select Add now to enter the tax account ID and the Employer Identification Number (EIN) or Social Security Number (SSN). You can also select Edit if you need to make any changes.
  4. Verify the total sales amount, non-taxable sales, and taxable sales.
    Note: These fields auto-populate from the sales tax liability report.
  5. Verify the taxes at the state and local level.
    Note: The origin of the state tax field auto-populates from the sales tax liability report.
  6. (Optional) You can add on sellers purchase, also called use tax, and QuickBooks will automatically update the total.
    Note: You'll get a prompt to add the use tax adjustment on the form. You can select an existing account or create a new one if needed.
  7. Add your payment info.
    Note: QuickBooks will send the info to the tax agency as they’ll process, collect, and remit the payment. After submission, it could take up to five business days to collect the payment.
  8. Verify the tax details and add your payment info. Then, select the By submitting this payment I hereby: checkbox to acknowledge the disclaimer.
  9. Select File and Pay.
    Note: QuickBooks may take a few hours to confirm submission and acceptance from the tax agency. In some cases, this could take up to two business days.

Record your sales tax

Once you’re done filing, you can now record your sales tax payment.

Frequently asked questions (FAQ)

You must complete the registration process with your state agency where you collect and file your sales tax returns. Tax Identification Number is unavailable in QuickBooks.

Note: You'll need these details from your state online sales tax account:

  • Valid state-issued sales tax ID
  • Your EIN or SSN associated with your state sales tax account ID

The e-file service might not be available yet in the state where you collect sales tax. We work with all the states where sales tax is levied. Each state has its own rules and regulations, so it may take time to roll out the service.

Note: Only monthly and quarterly filing frequencies are available.

Sales tax can only be paid using ACH debit. We’ll send this via a secured transmission to the state along with your sales tax return.

It can take up to 48 hours to receive confirmation from the state agency. Once we receive confirmation, QuickBooks will notify you via email, and you'll see the status update in QuickBooks.

Tip: You can also track your sales tax return manually.

The state may reject a return for many reasons. The most common reasons are:

  • Invalid or incorrect state tax ID or SST ID
  • Invalid EIN or SSN
  • Business isn’t registered for sales tax yet
  • State agency service may be down for maintenance

You can record your payment in QuickBooks.

Yes, you can. When you load the tax form, you’ll see the option to include your use tax.

The sales tax e-file service is currently limited to sales and use tax without any adjustments. You'll soon be able to file with all the adjustments.

The state agency will review and approve your refund. If you qualify, they'll contact you or you can reach out to them for updates.

Yes, as long as your accountant's an authorized user in your QuickBooks and has the details needed to do so.

  1. Run the sales tax liability report for the same period and compare them.
  2. Check for overrides you may have used on invoices.
  3. If you still see a discrepancy, let us know.

QuickBooks automatically updates the rounding in accordance with state agency's guidelines when you submit a return. You don't need to do any adjustments.

Note: If the difference is unusually bigger or smaller, check any adjustments that you made.

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