How to record sales tax Payment in Quickbooks online

When you collect sales tax from customers on behalf of tax agencies, you must make those payments to them. QuickBooks Online Sales Tax Center makes it easy for you to track sales tax liabilities for each tax jurisdiction you have already paid and arrears. The sales tax center is the best place, to record sales tax Payment in Quickbooks online because you can see all your recent payments on one page. You can view your sales tax monthly, quarterly, or yearly and adjust it to suit your needs.

Reducing the tax into service tax or VAT is the business owner’s responsibility to the tax authorities and the business owner pays the tax agencies. We can record these tax payments in QuickBooks by visiting the tax center. The three tax agencies created by QuickBooks by default are Value Added Tax or VAT, Service Tax, and Central Sales Tax or CST, Swachh Bharat Cess, and Agricultural Welfare Cess.

Pay Sales Tax 

Before learn how  to record sales tax payments in QuickBooks online, let us see the process of Pay sales tax:

To Pay Your Sales Tax:

  1. From the Seller menu, go to Sales Tax, and then select Salary Sales Tax.
  2. On payment from the account drop-down, select the checking account you want to use for tax payment. Note that the drop-down only shows bank accounts.
  3. Show sales tax by field, check and make sure the date is correct.
  4. In the Initial Check Number field, make sure the check number matches the next check you want to use.
  5. The list shows all sales taxes payable to your company, sales tax payable by the tax agency, and the amount due on the sales tax date. If the list is empty, you may not be able to set up sales properly.
  6. In case you want to make a partial payment, go to the Amt Paid column and then type the amount you want to pay for each tax item on the list.
  7. If you want to pay all the taxes you owe, select All Taxes. It is recommended that your tax agencies stay on the same payment schedule. As soon as you place a checkmark in the pay column, all the tax buttons will switch to the Clear option.
  8. If you still need to adjust for credit, fines, etc., choose adjustment.
  9. If you need to write or print a check later, place a checkmark on the box to be printed.
  10. Then select ok.

After reviewing the pay sales tax, you can write a check to the tax agency using the tax sales tax window (do not use the check window). To record sales tax Payment in Quickbooks online, follow these eight steps.

Steps Record sales tax payment in QuickBooks Online:

  • Step 1. Select Tax from the menu on the left, and then Sales Tax.
  • Step 2. Select the tax agency you are paying for in the “Sales Tax Arrears” list.
  • Step 3. Record at the bottom of the list and click Pay.
  • Step 4. Enter specific information:
    • A) The bank account you are paying for
    • B) Date of payment
    • C) the Last date for the tax period
    • d) The amount of tax you paid
    • E) To adjust the amount, select the adjustment and enter the information about the adjustment
    • F) Any note about what you want to pay.
  • Step 5. Click Record Tax Payment.

How To File Tax Payments For Tax Agencies QuickBooks Online

  1. Click on the tax on the left and it will take you to the tax center.
  2. From the tax dropdown, select one of the following. Alternatively, then click the right or left arrow to select the carousel.
    • GST
    • Service tax
    • Wyatt
    • CST
    • Clean India cess
    • Agricultural Welfare Cess
  3. In the Returns section, determine the period for which you want to file the payment.
  4. In the Action column against this period, click on Record Payments or select the Dropdown button and click Record Payments
  5. Depending on the agency where the payment is being recorded, the following window will ask you to enter the payment information.
    • Record GST payment
    • Record service tax payment
    • VAT payment Records
    • Record the CST payment
    • Record Clean India Cess Payment
    • Farm welfare cess payments Records.
  6. For GST, enter the payment account, payment date, IGST amount, CGST amount, SGST amount, and memo.
  7. For service tax, VAT, CST, Swachh Bharat Cess, Agricultural Welfare Cess-Payment Account, Payment Date, Payment Amount, and Memo.
  8. Then click Save to save your transaction.

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How To Compare Tax Payment With Online Banking Transactions

We do not pay taxes directly from online banking/bank feeds. Therefore, we must first register the payment and compare it with the downloaded transaction.

Here are the steps to compare online payments with online banking transactions.

  1. Click Banking on the left.
  2. If you have multiple accounts linked, please select the bank account you paid for.
  3. In the review, see the tax department for the tax payment you made.
  4. If the tax payment date you entered in QuickBooks and the amount matched with the tax payment downloaded from the bank, QuickBooks will indicate that you want to match the transaction.
  5. Please note that if there is a difference in amount, the match should not be attempted until there is another download transaction that satisfies the difference.
  6. If there is a difference in the date, click on the downloaded transaction and the section will expand.
  7. Click Find Match and a new window will appear for the match transaction.
  8. Please enter a payment date range within QuickBooks.
  9. Select the transaction and then click Save.

Fix common errors:

For whatever reason, you may get an error message when trying to navigate a sales tax transaction. The most common error:

“Error deleting transaction: Sorry, we can not file and delete now. Please try again later.”

This error can occur due to books being closed for the duration of the transaction or when the sales tax is matched to the banking transaction.

Follow these steps to resolve:

Step 1. Click the gear icon in your company name at the top right of the screen.

Step 2. Then Click on Company Settings

Step 3. Select Advanced in the menu on the left.

Step 4. Then Click on the pencil icon to the right of the accounting

Step 5. Unchecked the “Close Books” box

Step 6. If the transaction does not match the banking download, then try deleting the tax again.

Final Note 

If you have been using QuickBooks Online for a while, and have paid sales tax using the previous method, you will need to record sales tax payments using both the previous method and the Sales Tax Center for a while. Ken. For existing transactions using the previous sales tax method, record sales tax payments as you did in the past – for example, using a check check. You can record sales tax at the Sales Tax Center for new transactions that charge new rates that you set.

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