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Level 1

sales tax exempt status

Hi, we are a small plumbing company. We chose to no longer have sales tax exempt status.   We pay the sales tax up front with the vendors and then pass it on to our customers. How do I change this in quickbooks so that I no longer see sales tax as a liability?

I'm not an accountant, just trying to figure this out.

Thank you.

3 Comments 3

sales tax exempt status

Hi there, plumbergal1.


You can record the sales tax payment removes the liability that appears on your QuickBooks company file. Here's how:


  1. From the Vendors menu, go to Sales Tax, then select Pay Sales Tax.
  2. On the Pay From Account drop-down, select the checking account you want to use for the tax payments. 
  3. From the Show sales tax due through field, check and make sure the date is correct.
  4. From the Starting Check No. field, make sure the check number matches the next check you want to use.
  5. Select Pay All Tax if you want to make a payment for all the taxes due. This is recommended if your tax agencies are on the same payment schedule. 
  6. Select Adjust if you need still need to adjust a credit, fine, etc.
  7. Click OK.


You can also adjust your liabilities when needed. Please refer to this article to learn more about the process: Adjust the sales tax amount you owe.


Stay in touch with me if there's anything else you need with your sales tax. I'll be around to help you.

Level 1

sales tax exempt status

Thank you!  I was able to correct this. Much appreciated.


sales tax exempt status

Thanks for following up with the Community, plumbergal1.

I'm happy to hear MaryLandT was able to help with entering your sales tax payment and removing the liability.

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.


Please feel welcome to send a reply here or create a new thread if there's ever any questions. Have a great day!

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