How to record sales tax payment and the credit deducted not refunded but credit? I can enter the net amount paid but in the sales tax report then it shows I short paid

Hi bob42,

Thanks for reaching out to Community.  Welcome back!  Ensuring your sales tax payments and credits are recorded properly, keeps your books balanced and your reports accurate.  QuickBooks Online provides the available options in the sales tax centre.  I'd be happy to look into this for you!

Currently, there's no option for entering a sales tax credit.  However, you can manually add an adjustment when preparing the return.  Here's how:

From the Sales Tax centre, select Prepare Return

Click on Adjustment to the right of Rebates 

Enter the amount of the Credit to be applied 

Hit Mark as Filed

You'll then be prompted to Record Payment for the remaining balance due

You're all set!

If having the option to apply a sales tax credit is something you'd like to see in future updates, I'd recommend providing your suggestions to our Development Team through the feedback option within product.  We appreciate any recommendations you may have to improve your overall customer experience with QuickBooks Online.  To send feedback, go to the Gear in the top right of your account and select Feedback.

If you have any additional questions, please don't hesitate to reach back out.  We'd be happy to help!