Hi integritywelding,
QuickBooks Online is not designed to track taxes on purchases or expenses. However, if you really need to enter them, you can create a non-inventory item for it. You will also create an account called Purchase/Usage Tax (or something similar) and assign it as an Expense Account to the item for tracking purposes. You can add the tax item to your expenses and manually enter the tax amount.
When you need to know how much taxes you incur on your purchases, just run a quick report of the account assigned to the tax item. Please note that this amount will not affect your sales tax report since it will not flow to the Sales Tax Center. If you need to do an adjustment, you can do it manually on the sales tax report and you have to delete or zero out the account assigned to your tax item. That way, your taxes will not be overstated.
I would highly suggest consulting an accountant about this matter first before doing anything. Then, please get back to us if they have important instructions, so we can guide you to reflect them in QuickBooks. Have a good day!
