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Level 2

How can we make a tax object to a liable account ?

I have to choose a tax value(VAT@12%) in my invoice and this tax value should be shown in an account (liability) in chart of accounts. Example if I have a line item sales valuing $100 then tax is $12, this $12 must be shown in an account when we go to chart of accounts.

Solved
Best answer 06-20-2019

Accepted Solutions
Anonymous
Not applicable

Re: How can we make a tax object to a liable account ?

Hi there, grow_quick.

 

For every Custom tax or tax agency you’ll setup, the system will automatically create a separate liability account. Selecting your own liability account for this is currently unavailable. If you’ll need to transfer these funds, you might seek assistance from your accountant to perform a journal entry. 


I’ll also take note of this preference and pass it over to our developers for future updates. 


You’re always welcome to drop by again if you have other questions about QuickBooks.  
 

View solution in original post

5 Comments
Anonymous
Not applicable

Re: How can we make a tax object to a liable account ?

Hello, grow_quick.

 

All of the taxes that you can select when creating an invoice are reported on your VAT Payable (Liability) by default. If you don’t have the 12% VAT as an option, you can add this rate in your QuickBooks. Here’s how:

  1. Go to Taxes from the left menu. 
  2. Click the Add tax tab at the upper right corner. 
  3. Select Tax rate. 
  4. Enter the Tax name, rate and other necessary information. 
  5. Click Save. 

Please make yourself comfortable on visiting us again if you need anything else.  

Level 2

Re: How can we make a tax object to a liable account ?

 
Level 2

Re: How can we make a tax object to a liable account ?

Hi @Anonymous , firstly thank you so much for replying. Yes I did that and it worked, it has shown my tax amount($3000) in VAT payable account in chart of accounts, but I need that $3000 amount to be placed in a different account instead of default VAT payable account. I have a output vat account and I need this $3000 to be shown in that output vat account instead of VAT payable account.

 

Thanks :)

 

 

Anonymous
Not applicable

Re: How can we make a tax object to a liable account ?

Hi there, grow_quick.

 

For every Custom tax or tax agency you’ll setup, the system will automatically create a separate liability account. Selecting your own liability account for this is currently unavailable. If you’ll need to transfer these funds, you might seek assistance from your accountant to perform a journal entry. 


I’ll also take note of this preference and pass it over to our developers for future updates. 


You’re always welcome to drop by again if you have other questions about QuickBooks.  
 

View solution in original post

Level 2

Re: How can we make a tax object to a liable account ?

thank you @Anonymous  

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