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:
- For Customer field, create a new one (example zSales Tax Adjustment) or leave it blank still works.
- Select deposit to bank account.
- Select same Products/Services items, one as a taxable item and another one non-taxable item.
- 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.
