I sometimes pay taxes on items purchased (like from Amazon) and sometimes I don't ( from vendors). Any idea how to enter these purchases in QBO? Struggling with TAXES!

Good morning, @gkpatram-gmail-c. 

It's great to see a new face here in the Community. You came to the right place to get information about entering purchases and collecting taxes. 

You can record these purchases as expenses or bills. Here are two articles to see which is best for your business: 

• Manage expenses
• Manage bills

To be sure of your tax question, I recommend consulting with your accountant. They'll be able to give you the advice you need based on how you run your business. Another helpful guide is listed below: 

Set up where you collect sales tax 

Reach back out if you have any other questions or concerns. I'm only a post away. Take care! 

Thanks. very helpful but not quite what I was looking for. How do I enter it in QB? Assuming I purchase something for $10 and paid 0.70 in taxes, do I enter the product as $10 then Taxes Paid (new account created) as 0.70, or do I enter the product as $10.70?

Hi there, gkpatram.

I'll be more than happy to guide you in recording the taxes you paid on your purchased items as well as the price.

Since you purchased items from Amazon. You'll need to add Amazon as a vendor by clicking Expenses, selecting Vendors, clicking the New Vendor tab, then filling in the necessary information, and then click Save.

Furthermore, to record the items you've purchased on Amazon with the taxes you've paid.

You can follow these steps:

1. Click the + New icon.
2. In the Vendor column, select Bill.
3. Click the Vendor dropdown then select Amazon.
4. In the Category details, enter Taxes paid below Category, and then in the Amount enter the total tax you paid on the item which is 0.70.
5. In the Item details section add or Enter the product you purchased below Product/Service on Amazon and then enter the QTY, Rate, and Amount of $10. 
6. Click Save and close.

Once done, you can go back to the vendor where you've created the transaction then click it, and select the transaction list to see if it was recorded correctly.

For future reference, you can read through this article if you want to categorize and match online bank transactions in QuickBooks Online.

For additional questions about recording taxes for the item you purchase, don't hesitate to reply to this post. I'll be willing to lend a hand. Have a good one!

Thanks, I have Simple Start not Plus or Advance.

I think I got the idea though, I should just keep track of cost so I can bill properly, and If I want to keep track of taxes paid I should enter all the taxes paid in a seperate account.

I dont do inventory or vendors billing, I purchase everything via CC, I only buy items for customer jobs, not necessairly a reseller, although I will from time to time assist a client with a product.