Sales Tax Entry

Hi Quinn.

I appreciate you for reaching out to us here on the Community page. I'm here to help you with recording your monthly sales taxes in QuickBooks Online.

Once you've marked your sales as taxable, the system will calculate taxes depending on the rate or location selected automatically. By the time you want to process sales tax payment, you can view your return from the Sales Tax window. Then, pay the taxes from there. I'll guide you how.

1. Click on Taxes at the left pane, then click on Sales Tax.
2. Look for the Sales Tax Due from the result.
3. Tap on View return.
4. Review the details, then click on Record Payment.
5. Enter the Payment date and your Bank account.
6. Hit Record Payment, then check the payment details.

If you have other ways of tracking your sales tax payments, I would recommend reaching out to a professional accountant for further assistance. They are the ones who give you the best options that fit your business needs and select the correct credit and debit accounts.

For more hints about handling your sales tax payments, you can open this link: Manage sales tax payments in QuickBooks Online.

Moreover, you can skim through the topics from our help articles for more hints about resources while working with your sales and customer's transactions: Topics about your company's income and customers.

If you have any other questions about sales taxes, please let me know by adding a comment below. I'm always here to help. Have a good one!

If I enter the tax on the sales receipt, how do I offset it on that same receipt?  My sales receipts have the daily sales less the payments which zero out.  If I add the tax, should it be offset or should it accumulate for the month and that is what I am writing the monthly tax return against?

I am sorry- I am new to this!

Thanks for bringing this one to our attention, @quinn14249. 

Welcome to the Community. It would be my pleasure to lend a hand with your concern about the sales tax in QuickBooks Online. 

I have some information about recording sales tax. You can add the sales tax account from the product and service settings. When you create an expense or bill, QuickBooks will automatically calculate the sales tax for you.

Here's how:

1. From QuickBooks Online, navigate to the Taxes tab.
2. Click Add/edit tax rates and agencies.
3. Select New and choose either a single or combined tax rate.
4. Enter a name, the agency you pay, and the rate's percentage. Click Save.

After that, go to the product settings and edit the item to apply the sales tax you created. Here's how: 

1. Go to the Gear icon at the top, then choose Products and Services.
2. On the Products and Services page, click New.
3. Select Non-Inventory or Service for Item Type.
4. Enter Sales Tax in the Name and Description fields.
5. Leave the Sales price/rate field blank.
6. In the Income Account field, choose the account you set up in Step 1.
7. Make sure the Is taxable box is unchecked.
8. Select Save and close.

You may also want to know more about sales tax in QuickBooks Online and manage sales tax payments. 

I've included a few resources about sales taxes that will come in handy moving forward:

• How to edit sales tax rates
• Remove sales tax codes

Additionally, you can also add sales tax categories to your products and services. This helps you track your sales tax more accurately. 

Hit the Reply button below if you need anything else. I’ll be more than happy to help. Thanks for dropping by and take care!

I want to enter the amount of sales tax I have received per day. I don't know how/where to enter that in order for me to use the Taxes feature to file my monthly returns.

I tried a sales receipt but it does not record the sales tax- it reverts to $0 because I don't have any 'taxable sales' listed since I enter the daily summary.

I am trying to enter the sales taxes collected on a daily basis, not per transaction.  I tried to use the sales receipt but it is not recording the sales tax as I entered it.  It reverts to $0.

I use the sales receipt for the summary of the days transactions- sales and a summary of the receipts for the day.  I just want to enter the daily sales tax received so I can use the Taxes feature in QB to file my monthly taxes.

I can help you add the sales tax to your daily sales receipt, @quinn14249.

Let's make sure that you already set up your sales tax rate and settings in the Sales Tax Center.

From then, when you record your total daily sales income, simply check the Tax column so it will accumulate the total sales tax for the day. The tax returns will appear under the Sales Tax tab in the Taxes menu.


 

Additionally, you can run the Sales Tax Liability report to help you see the total tax amount for the day (Today) or month (This month) or set a Custom date. Simply select the period in the Report period drop-down list.

I also recommend consulting an accountant on how to account for the amounts from your books to keep your data accurate.

For the detailed steps on how to record your daily sales, you can reference this article: Record your total daily sales.

Then you can follow the steps provided by my peer @Angelyn_T on how can view your tax return from the Sales Tax window and pay/enter your total tax for the month. For more information, you can check the process in the Manage sales tax payments section through this article: Manage sales tax payments in QuickBooks Online.

Please let me know if you have other concerns with entering sales tax or anything else about QuickBooks. I'm ready to help anytime.

How can you do this when we enter in our daily transactions as a JE per day with a sales tax collected line? 

Thanks for posting here, @Atrevino323. I'm here to ensure you'll be able to enter sales taxes in QuickBooks Desktop (QBDT).

In QBDT, sales taxes will only be recognized if this is entered on sales transactions. This is because journal entries are only used for correcting. That said, you have to do your taxes manually using a report that contains the taxes collected and paid.

Additionally, in a journal entry, the tax code is not used as in QBDT forms such as invoices and bills. You need to enter the tax account, then tab to the Sales Tax field and input the correct Sales Tax Item.

You also want to check this article to know more information about how data are entered in QuickBooks: Targets and Sources.

I've also added this helpful resource that you can use as a guide in reviewing your sales tax payable in QBDT: Review sales tax reports.

If you have any other concerns about managing sales taxes in QBDT, please don't hesitate to post a reply below. Have a good one and keep safe.