I bought a phone and was charged 100% of the tax up front. The rest will follow in payments. I cannot seem to make an expense record for 100% tax. How do I do this?

Hi pearson-m,

Welcome to the Community. It's essential to correctly record your transactions in order to keep your books balance. QuickBooks Online is a great program that offers the ability to simply track your sales and expenses. I'd glad to point you in the right direction to make an expense record for 100 percent tax. 

I'd encourage you to refer to the following steps to record the expense.

1. Click on Bookkeeping on the left navigation menu.
2. Select Transactions and then Expenses.
3. Click on New transaction and then Expense.
4. Under Account details, on the first line, in the Account column, select an expense account related to the imported goods.
5. Enter 0.01 in the Amount column.
6. Select a tax code that represents all tax types paid, in this case the GST.
7. On the second line, in the Account column, select the same account.
8. Enter -0.01 in the Amount column.
9. Select “Out of scope” for the tax code.
10. Edit the fields below the Subtotal "GST @ 5% on 0.01" to reflect the amount of tax paid.
11. Select Save.

The expense of 100 percent tax will be recorded in your books.

Let me know if you have any questions, I'll be happy to help.

We're happy to be of assistance pearson-m,

If you have any other questions, feel free to reach out here.