How To Delete Manually Recorded Sales Tax Payment In QuickBooks Online Sales Tax Center

Currently, in QBO they’ve two sales tax features: 1) New recently rolled out Automated Sales Tax
and 2) Old regular Sales Tax

If you have New Automated Sales Tax, here is how to delete manually recorded payment in QBO:
Left Dashboard > Taxes > History > Select payment in question and click “View Return” > It will search and pull the records > “Review your sales tax” screen will open > Under “Payment details” on the right panel, click payment date link (next to recorded amount paid) > Now you’re payment screen, at the bottom right corner, you will see “DELETE” payment. Click delete, you will see “Are you sure you want to delete this payment?” message > Click Delete green button. Delete is done.> They will update the return and prompt back to review your sales tax page. Record payment again or close the page.

Quick YouTube video on how to delete recorded sales tax payment

If you have old Sales Tax (as already mentioned), here is how to delete manually recorded payment in QBO:
Taxes from the left dashboard > Sales Tax.
It will take to the Sales Tax Center.
Under Recent Sales Tax Payments, highlight the payment in question.
Click Delete Payment.
Click Yes on the confirmation screen.

QuickBooks Online Sales Tax – “In The Know” Questions and Answers

In The Know (Feb 27th ITK FAQ) LINK

Q: Is the sales tax what came with Exactor acquisition?
A: Yes, the new automated sales tax experience in QBO is powered by the Exactor data base.

Q: can you have more than one taxing agency?
A: Yes, you can add as many agencies as you need by accessing the Sales Tax Settings in your tax center.

Q: Should we turn off Automated Sales Tax if client is using SQUARE? This knowledge based article for Square Sync says to turn it “ON”, but Tech Support said to turn it “OFF”. Confusing!
A: You can have your automated sales tax feature turned on, even if you are using Square.

Q: I use Sales Tax for my Destin, FL vacation beach condo business. All tourist tax is based on location of condo, not the address of the customer. How will the new Sales Tax features affect vacation rental sales tax QBO clients?
A: At this time, QBO does not support the specific rental tax in FL, but we are looking to include this is in a future release. In the meantime, you can override the sales tax on your transaction by clicking the blue sales tax link.

Q: How are you handling the jurisdictional tax components of various states?
A: Sales Tax will be calculated based on your location, your ship to location on the transaction and the items being sold. These components are taken into account with the sales tax laws for the location(s) to determine the correct tax to be applied.

Q: If we don’t have a sales tax customer yet, is there a way to get hands on look at this new sales tax experience? A demo? A practice client?
A: Any new QBO accounts have the automated sales tax feature enabled. Also, please see the prior
webinars as a full demo was shown in the past!

Q: When will you expand Sales Tax Reports? You have recently introduced new automated sales tax
feature but you can’t run sales reports filtered by zip code, city, and state. Clients are desperately looking for these reports for the last couple of years.
A: Non-taxable sales report is coming soon, with more report improvements beings explored for future releases!

Q: Can you use the Sales Tax function to track taxes due on “purchases” too?
A: Currently sales tax is only tracked on sales transactions in QBO

Q: Which sales tax engine are you using to keep sales tax rates up to date in the new sales tax tool? Is it an Avalara or Vertex system?
A: We are using the Exactor data base, as Intuit has recently acquired the Exactor Company.

Q: I live in Utah and have two retail stores. They happen to have the same tax rate however they are due to the same state, different counties, and different cities. I am unable to add the same Tax authority “Utah” twice. Any movement here? Thankfully I am still on the older version but the new version does not accommodate this workflow (for Utah as the tax agency at least).
A: You’ll only need to add the agency once, the tax is being generated from the Company Address in QBO. This feedback will be provided to the sales tax team to hopefully enhance this experience

Q: Will this allow for “use tax” in states where the client is tax exempt but has to submit use tax for purchases?
A: At this time, QBO only supports Sales taxes, but Use Taxes are being explored for a future release

Q: Is this retroactively applied?
A: No, this will only affect transactions created AFTER the automated sales tax feature is turned on (unless you go back and edit an older transaction yourself)

Q: Can you manually add sales tax information for a client who uses a different system to account for sales?
A: No manual sales tax rates are available in the automated sales tax feature

Q: What if you’re selling from multiple company locations? How do you differentiate between them for sales taxes?
A: At this time, the company address would need to be updated to account for the change location. However this feedback will be provided to the sales tax team to hopefully enhance this experience

Q: We use Shopify and download the sales receipts into QBO. Shopify handles all the sales tax
calculations…do I need to use the new QBO sales tax center?
A: All customers will eventually be migrated to the automated sales tax. You’ll need to have your sales tax set up, but no additional work will be required on your transactions that are imported from Shopify

Q: Does the Sales Tax (due date) reminder show up in WORK as per the last presentation?
A: Sales tax reminders will be sent via email at this time

Q: Is the Sales Tax calculated on the Cash or Accrual basis?
A: Currently, only Accrual basis is supported with the automated sales tax feature. No companies who have been set to Cash basis will be enrolled in this feature until cash basis support is available.

Q: Will there be a way to clear off the old data? It never matched the chart of accounts before and was always off.
A: Automated sales tax calculation will not be retroactive. You can record tax payments and/or journal entries to balance this.

Q: Can you have multiple shipping addresses for the same customer in order to calculate sales tax?
A: You can change the shipping address on a transaction basis.

Q: Can you turn it off at a later time after opting in? Like a try before you buy system
A: Once this is turned on, there is no way to disable.

Q: What if the client has multiple locations with different tax rates?
A: If you’re shipping to different locations you can simply update the shipping address on the location. If this is multiple Ship From locations, at this time the only workaround is to change the company address in QBO. I will be providing this feedback to the sales tax team.

Q: Is there a way to track use tax?
A: Not at this time.

Q: I see customer is tax exempt under customer info. Is this a selection that needs to be made on each invoice or can a default be set on the customer?
A: The customer can be marked exempt under their set up page.

Q: Will QBO be able to tax different rates for different products? Example – lodging sales are 10% but product is only 8% for one of my clients. The extra 2% for lodging is imposed by the county my client is in.
A: This is tracked by the sales tax categories listed on the product/service. If you do not see the specific category you’re looking for, please provide feedback. The team is looking to expand this list as needed.

Q: I want to opt out of the new sales tax, how do I do that?
A: Please contact our support team, they can gather additional information to be sent to the sales tax research department for review/updates.

Q: Based on company address setup, can you flag if the sales tax filing should be based on cash or accrual basis method?
A: Currently, only Accrual basis is supported with the automated sales tax feature. No companies who have been set to Cash basis will be enrolled in this feature until cash basis support is available.

Q: Illinois offers a discount on the sales tax due if I pay it before a certain date. How do I record that discount when I pay my sales tax due to the state?
A: QBO will automatically apply these discounts when you submit your return. You can also add an
adjustment on the View Return page.

Q: Is the tax exempt customer specific? Could you do it by job rather than by customer?
A: You can mark the customer exempt, or mark items non-taxable, on a transactional basis

Q: I’m sorry if I missed this answer already, but is this being rolled out? I have a current client I just checked and it is still the standard Sales Tax Center
A: This is being rolled out only to existing customers who are currently using accrual basis and have one sales tax agency set up, in phases. Customers outside of these qualifications will be migrated soon.

Q: for sales tax calculation purpose, what about for companies located in one state but have the
warehouse is in another state. Will QBO have any new function for that?
A: Currently, you would have to change the company address to account for different “ship from”
address.

Q: Will we get notified if a jurisdiction has a rate change? Also is there a way to exempt nonprofits and other companies on a B2B transactions.
A: You can make your customers exempt by editing the tax info section of their profile. Rates will be updated automatically for you based on the information QBO receives from the tax agencies.

Q: How do we turn off sales tax if we do not charge sales tax?
A: Automated sales tax can be turned off if there are no transactiions with sales tax calculated on them in the account. Click Sales tax settings in the sales tax center to do so.

Q: Sales Taxes – since many use 3rd Party apps with the QBO invoices, we need the ability to have an over collected box due to having to pay the State those over collected amounts. We also need a Prepaid
A: Sales Tax box for those clients who don’t resale all their materials, but charge the customer the straight receipt. Thanks for the feedback, you can add an adjustment on the View Return page if needed.

Q: Regarding sales tax, is this linked up to an Avalara or something?
A: Exactor

Q: Will that support auto taxes with different layers but 1 agency?
A: Yes, local, city, county taxes will be applied based on the location(s) on the transaction

Q: How does this work with third party apps?
A: Transactions with sales tax imported from a third party app will not be changed, unless you make an edit to the transaction

Q: How do you get the prompt to set up tax agency?
A: Adding additional agencies can be done by clicking the Sales tax settings within the tax center

Q: Is this competing with Avalara as the go-to sales tax option?
A: You are still welcome to use the Avalara app for sales tax, this is just built into the QBO product for you.

Q: Will there be anything to handle use tax? When a vendor does not charge sales tax, can purchases be marked use taxable so we can self-assess?
A: At this time, use tax is not supported. This is being considered for a future release

Q: Is Washington State going to be one of the last states to have the new tax center?
A: The rollout is not done based on state, but by how many tax agencies are currently set up in the existing account.

Q: What about Franchise Tax?
A: Not supported at this time

Q: B & O Taxes, how do I track these taxes that I don’t bill to customers?
A: Currently only sales tax is supported

Q: is this available sales tax feature for QB desktop?
A: QB Online only at this time

Q: What about special sales taxes such as lumber tax?
A: Sales tax categories on the products/services list will help account for special taxes on products. If you do not see the category you are looking for, please provide feedback as the team is looking to expand the available list.

Q: What about drop shipments?
A: Use tax is not currently supported

Q: How do I find the option to now have sales tax automated in QBO?
A: This will be a phased rollout. You’ll see the option to move in your sales tax center once available for your specific account.

Q: I’m using Avalara for a client, will QBO be able to do the same?
A: Yes, QBO will calculate your taxes on your transactions. You are still welcome to use the Avalara app if you prefer, but our option will be built into your QBO account.

Q: When sales tax rates change, there doesn’t seem to be a great way to track the effective date of the new rates etc. Will this new system handle that better?
A: Yes, QBO will know the effective date of rate changes and will assign the proper rate(s) based on the transaction date.

How to record sales tax refund check from Tax Agency in QuickBooks Online

I’ve not seen a single article from QuickBooks Help related to this subject on how to record Sales Tax refund check in QuickBooks Online. Most of the answers found don’t work or whoever answered the questions does not fully understand how Sales Tax Center is so limited to making any credit/refund adjustments. It’s not clear this functionality is even available in QBO.

What I found as a workaround is to create a Sales Receipt in QBO. Ths assumes negative balance is already shown in Sales Tax Center. In other words, you’re expecting this refund from the Tax Agency.

These are the steps to follow in creating a Sales Receipt:

  1. For Customer field, create a new one (example zSales Tax Adjustment) or leave it blank still works.
  2. Select deposit to bank account.
  3. Select same Products/Services items, one as a taxable item and another one non-taxable item.
  4. With taxable sales item, it should compute sales tax refund amount at the bottom. In this example shown in the screenshot below, taxable sales amount is $21,750, the tax rate is 8% and received $1,740 refund from Tax Agency.

Sales Tax on Shipping Costs

What Small Businesses Need to Know About Sales Tax and Shipping
QuickBooks blog
From the article: For small businesses selling goods online to remote customers, shipping is an integral part of doing business. And, some states tax shipping costs just like they tax the purchase price for a product sold. But, then again … some states don’t. If you want to get your sales taxes right and avoid non-compliance penalties, you need to know when sales taxes on shipping applies. …

Related article: Top 5 Sales Tax Filing Mistakes That Small Businesses Make


Video Tutorial
QuickBooks Online – how to charge sales tax on shipping in QBO Invoices Sales Receipts


 







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Does QBO automatically pull deposits pre-payment on taxable items into Sales Tax Payable

The answer is no.

Deposit field on Invoice is below the total field. It does not compute sales tax on deposit (acts more like pre-payment) field in QBO. If you run the Sales Tax Liability report from the Sales Tax Center (View sales tax liability report under Related Tasks at the far right side). Just click the tax amount. It will take you to the Transaction Report. You can run this report on a cash basis, you will not see sales tax amount on that deposit or the taxable amount on that invoice total. Of course, on an accrual basis, you will see sales tax amount on the whole taxable sales invoice amount.

In this example, refer to invoice #15-00334 with $100 deposit. No tax amount on a cash basis. Only tax amount on an accrual basis. That is the way it’s supposed to be.

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How do I edit rename a sales tax agency in QBO

To edit and rename the Agency paid for Sales Tax in Sales Tax Center:

1. Click on Sales Tax (or under taxes) at left navigation bar.

2. Right below the Agency name is a blue link to rename. (Screenshot 1 below).

3. Then enter the Agency name so when you write a Sales Tax Payment check, the Payee name is correct.

sales-tax-rename






Do we charge sales tax on a discount amount

It really depends on state regulations and also discount type. You would need to contact your local sales tax agency for this answer.

FOR EXAMPLE

Any in-store discount may reduce sales tax. However, any manufacturer coupon still has to have sales tax paid on it.


 

Sign up QuickBooks subscription for new company. Or add additional company subscription for using the same user ID (choose “Already have an Intuit user ID?”)

How to print sales tax check in new QuickBooks Online?

From the blue navigation bar on the left > select Sales Tax tab > select “Record Tax Payment” blue button > New “Record Sales Tax Payment” screen will open > “Print a check” checkbox is located right below Notes field > select Checkbox > select “Record Payment and Print Check” blue button

Now, sales tax check in queue to be printed

From the Create (+) sign > select Print Checks

Follow other selections to preview and print check

QuickBooks Online: Where do I find the amount of sales taxes due

Sales Tax Center
Sales Tax Center
print sales tax check
print sales tax check