How to Manage SALES TAX – set up, collect, report and pay sales tax in QuickBooks Online

QuickBooks Online – How to Manage SALES TAX – set up, collect, report and pay sales tax
From the Dashboard > Taxes
Set up products and services and make it taxable > Gear > Lists > Products and Services > New > select ‘Is taxable” box.


Also, see reference article:
Sales tax in QuickBooks Online

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






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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

I don’t see any data when I run sales tax report. I list non taxable and taxable sales when I deposit sales

In order to get total sales and taxable sales with sales tax collected, you will need to run a “Sales by Customer Detail” report. This stand-alone report will not give you all the information you need to file the Sales Tax Return. You will need to further customize it to work-around.

To do this, you will to run a “Sales By Customer Detail” report, customize it and add “tax amount” and taxable amount” columns from selecting “Change Columns.

These are the necessary steps, you will need to take.

  • From the blue navigation bar on the left
  • Select Reports
  • Select “Go to report” (magnifying glass), type Sales by Customer Detail
  • Select “Sales by Customer Detail” from drop-down selector
  • Change Transaction Date as needed
  • Select “Customize” blue button (upper left)
  • Select “Change Columns” under Rows/Columns
  • Add Tax Amount (refers to tax collected)
  • Add Taxable Amount (refers to taxable sales)
  • Add Tax Name (if needed)
  • Select Remove button and remove unnecessary columns (optional)
  • Click OK button
  • Click Run Report

This will give Total Sales and Total Taxable Sales. Subtract these two columns in order to get Non-Taxable Sales.

Recommended: Also click “Save Customizations” button to make this as customized report for future use.

 

Customize Sales Tax Report - Change Columns
Customize Sales Tax Report – Change Columns

Customize Sales Tax Report - Total Sales and Taxable Sales

Customize Sales Tax Report - Taxable and Non-Taxable Sales

How do you delete/deactivate a sales tax code in new QuickBooks Online?

You can deactivate Sales Tax agency in the new QuickBooks Online.

From the homepage screen

  • Go to the blue navigation bar on the left
  • Select Sales Tax
  • Select Add/edit tax rates and agencies under related tasks
  • Locate Tax agency to deactivate and checkbox
  • Select Deactivate button
  • New warning screen will open
  • Click Continue and Done
add edit tax rates and agencies 1
add edit tax rates and agencies 1
add edit tax rates and agencies 2
add edit tax rates and agencies 2