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A
American-in-Paris
September 5, 2019
Solved

EU sales tax

  • September 5, 2019
  • 1 reply
  • 0 views

Hello, 

I need help !

In France, the sales tax is 20%.  I input the invoice with this rate.

once paid by client, it becomes a Sales tax Payable - right ? 

then here comes the hook ..

 

When we pay bills - including the VAT tax - like Joe elect ..sales tax 100.00 included..

French govt. makes me use this 100.00 tax paid to Joe..

and set it against the Tax Payable ..so we never pay the full amount because there are always these ( thus 70,000 in payables, & 49,000 in credits) 

expense credits we have to use..

I have been trying to G/L entry this adjustment & now it created this "other " account, which does NOT appear on my chart of accounts.

Please help me fix this -

Thank you

Anne

Best answer by AlexV

well this is my 3rd strike .

it seems, any time i try to adjust the Sales Tax payable acct. it blocks me .

there is no way to make an G/L entry on this account ? 

or is this a software safety ? 

when i learned of this "accounting " practice, i was shocked, you re use this money this way ..

if not possible, * ty for trying 

anne 


Good day to you, Anne.

 

The steps shared by JenoP above is correct. Although, in adjusting sales tax, you can only choose either Expense or Income Account.

 

Also, I'd highly recommend consulting to an accounting expert to guide you with this. They're the best to reach out especially with this kind of concerns.

 

I'm always here to help. Just leave a reply anytime.

1 reply

JenoP
JenoP
September 5, 2019

Hi there, Anne.

 

Thanks for sharing the screenshot. It's possible that the adjustments you've made are grouped under the "Other" line in your report.

 

Click the amount under the Sales Tax Payable As of Aug 31, 19 column. It will show you the transactions or source of the amounts posted under "Other". 

 

I would also recommend consulting a tax professional on how to record the credits to make sure your sales tax record is accurate. 

 

Visit us again if you need more help. 

A
American-in-ParisAuthor
September 5, 2019

Bonjour, 

and thank you.

but i think, the entries i need to make are not allowed in QB ? 

i need to use the amount we paid in tax ( credit VAT paid)

and debit the sales tax payable ( because, we are not making a full payment to the govt.) 

 

is there an easy way to do this ? 

i am getting confused - this is not normal outside of France ( ha ha ) thus they do not follow standard acct. rules ..

merci 

Anne

JenoP
JenoP
September 5, 2019

Hi again, Anne.

 

Adjusting sales tax is allowed in QuickBooks Desktop. Instead of creating a journal entry, you can record the adjustment in the Sales Tax Center. Here's how:

 

  1. Go to the Vendor menu, look for Sales Tax, and then click Adjust Sales Tax.
  2. Enter all required information including the Adjustment Account.
  3. Select the Reduce Sales Tax By option. 
  4. Enter the amount of the credit and click OK.

Here's an article for additional info: Process Sales Tax Adjustment.

 

Please continue to add a reply below if you have follow-up questions. 

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