Sales tax for items not for resale

Apr 17, 2006 2 Replies
P

We purchase items for company use that sometimes aren't taxed by our vendors. Therefore, I have a sales tax liability for that item.



How can I properly enter our purchase and sales tax liability so it will correctly show up in the Pay Sales Tax window and on reports? I seem to recall that if you enter a sales tax liability in a general journal entry, it isn't handled the same as far as Pay Sales Tax or Sales Tax Liability Reports are concerned as compared to when it is entered in a sales receipt or invoice window.



I have searched Help, the internet, two books on Quickbooks and Quickbooks Support to no avail. Any help you can provide, I would appreciate.



Thanks in advance,



Preston


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In Canada, the treatment of sales tax in journal entries has been corrected in recent versions. There is also a specific "Adjust Sales Tax Liability" function.

What country, what version of QuickBooks?

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If you're talking about Use Tax then I can't find where QB has any way to handle that. I've handled it two different ways in the past, for different companies on the preference of different accountants. You should check with your accountant for his/her preference.

I dont' think you'll ever be able to set it up to pay from the Sales Tax Liability screen. I had to use the Enter Bills method with an Other Charge item. One was coded to an exepense account and another to a COGS account.

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