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mary sakai
Level 3

can i record sales tax separate from the product?

i have been wondering when i pay sales tax on expenses (office supplies, service, airtickets, so on) , should i record 2 lines e.g. computer mouse $20.00 sales tax $2.00?  or too much detail and IRS is ok to record under supply total amount?

Solved
Best answer May 14, 2020

Best Answers
john-pero
Community Champion

can i record sales tax separate from the product?

On purchases your total price including any tax or shipping is your single line item expense. This includes tax on fixed assets like machinery or vehicles. The tax is included in the asset basis. 

 

About the only time you would track sales tax separate is on items for resale if your state does not have a blanket exemption and allows you to deduct tax paid from tax collected from customers

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4 Comments 4
JessT
QuickBooks Team

can i record sales tax separate from the product?

It's great to see you back, Mary!

 

If you're not required to pay the sale tax your purchases to your state, you can just enter the total amount.

 

If you're required to pay the tax to the agency, you can create an item for the tax part, and assign a liability account to it. That way, you can run a report for that account when you need to check how much you owe to the agency. This method is commonly used for tracking Usage Tax. By the way, please consult your accountant about the accounts to be used in this process.

 

You can always go back to this thread if you have other questions.

john-pero
Community Champion

can i record sales tax separate from the product?

On purchases your total price including any tax or shipping is your single line item expense. This includes tax on fixed assets like machinery or vehicles. The tax is included in the asset basis. 

 

About the only time you would track sales tax separate is on items for resale if your state does not have a blanket exemption and allows you to deduct tax paid from tax collected from customers

View solution in original post

mary sakai
Level 3

can i record sales tax separate from the product?

thank you... sales tax i am talking about is something small.. 

like i buy office supplies item is $10.00 and paid .95C for tax...  total amount $10.95.  should i do $10.00 for office supply and .95C for sales tax?   or just office supply $10.95 combined product amount and tax?

AlexV
QuickBooks Team

can i record sales tax separate from the product?

Good day, mary sakai.

 

In QuickBooks Desktop, you can track the sales tax on the purchases you've made. Though, you'll want to seek some guidance from your accountant if you need to track it. Cause if not, you can enter the total amount, including the sales tax, when recording expenses.

 

Here's the article you can check on how to track sales taxes on purchases.

 

I'll be here if you need more clarification. Wishing you all the best!

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