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Intuit
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Manage sales tax payments in QuickBooks Online

Learn how to record, adjust and delete sales tax payments in the Sales Tax Center.

The Sales Tax Cente has everything you need to handle sales tax in QuickBooks. You can run reports for your sales tax liabilities, record or edit sales tax payments, and see your sales tax owed for different time periods.

Here's how to manage sales tax payments and other tasks in the Sales Tax Center.

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

Review sales tax reports

Get a sales tax liability report

  1. Go to the Taxes menu.
  2. Select View Report.

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

See all of your sales tax payments

  1. Go to the Taxes menu.
  2. Under Recent Sales Tax Payments, select View All.

This opens a transaction report that lists all your sales tax payments. You can adjust the date range or select Customize to further refine the report.

Manage sales tax payments

Record sales a tax payment

  1. Go to the Taxes menu.
  2. From the Sales Tax Owed list, select and highlight the tax agency you're recording the payment for.
  3. Select Record Tax Payment.
  4. From the Bank Account dropdown, select the bank account you're making the payment from.
  5. Select the payment date and tax ending tax period ending dates from the dropdowns.
  6. Enter the tax payment amount in the Tax Payment field.Make
  7. When you're ready, select Record Tax Payment. 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 and check the Make Adjustment box when you record a sales tax payment. Use this when you need to decrease or increase the amount of Sales Tax owed for things like credits, discounts, fines, interest, penalties, and corrections for rounding errors.

Enter the adjustment amount and reason for the adjustment. You can enter a positive or negative amount.

Then 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 error: Select an income account for negative errors, 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. Go to the Taxes menu.
  2. Look for and select to highlight the payment you want to delete.
  3. Select Delete Payment. Then 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.

If you see the messages "We're sorry, we can't delete filed tax right now. Please try again later" "We're sorry, we can't deactivate the sales tax you selected. Please try again later. Contact support if waiting and trying again doesn't resolve the issue" while deleting a transaction, don't worry.

If the transaction isn't matched to a bank transaction

  1. Go to Settings ⚙️ and select Account Settings.
  2. Select the Advanced tab and select the ✏️ pencil icon
  3. Select and uncheck the Close the books checkbox.
  4. Select Save and then Done.
  5. Go back to the Taxes menu and delete the transaction.

If the transaction is matched to a bank transaction

  1. Go to the Banking menu. 
  2. Select the bank account you used to pay for the sales tax payment.
  3. Select the In QuickBooks tab.
  4. Find the transaction you want to delete. It should be matched to another transaction.
  5. Select Undo to unmatch the transactions.
  6. Go back to the Taxes menu and delete the transaction.

 

If you were using the earlier sales tax system and not the Sales Tax Center

If you see "This sales tax was recorded in the old sales tax system. Write a check to record a payment for this sales tax. Payments recorded via Write Check will not appear in the recent sales tax payments table below" don't worry. You'll need to edit each transaction that's part of the Original Sales Tax Payable amount.
  1. Find and open each transaction.
  2. Remove the current sales tax line item
  3. Use the sales tax items at the bottom of the invoice.
  4. When you're done, select Save.

Once transactions are re-associated, create a journal entry to move the liability from the new current sales tax liability account to the original sales tax liability account.

Note:
  • If you've been using QuickBooks Online and paying sales tax using the earlier method, you may need to record sales tax payments using the earlier method and the Sales Tax Center for a time.
  • If you have outstanding transactions using the earlier sales tax method, record sales tax payments the same way you did in the past.  Record new sales tax payments in the Sales Tax Center that charge the new rates you set up.

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

On-demand assistance.

Set up a live video appointment or message your QuickBooks-certified bookkeeper whenever you need help with sales tax payments. Learn more about QuickBooks Live Bookkeeping.

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