Question

How to keep track of use tax

Forum|Forum|3 years ago
December 8, 2022
1 reply
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We often purchase items that are not subject to sales tax, as we are not reselling them.

What is the proper way to keep track of "use tax" on items?

Example:

We purchased an office chair and was not charged sales tax in our state, but have to claim use tax.

I want to make sure it will show up on the same report when i go to look at my sales tax liability when paying sales and use tax.

QuickBooks Desktop for Mac

M

Mich_S

Greetings, @Kac5208. I'm here to guide you through the steps in keeping track of the taxes you owe.

Make sure to create a sales tax liability account first so you can record the taxes for the items you purchase. I'll show you how:

Open the Lists menu, then click on Chart of Accounts.
Select Create +.
Go to the Type drop-down, and choose Sales Tax Liability account type.
Fill out all the account details.
Hit OK.

After that, simply go to the Company menu and select Make General Journal Entries to enter the sales tax amount as a journal entry.

Furthermore, I recommend reaching out to your accountant for the right accounts to use when recording. They can also help keep your account/books in order.

Once everything is good and you'd want to add the sales tax amount with the sale, see this guide to properly set up sales tax in QuickBooks Desktop for Mac: Set up and manage sales tax in QBDT for Mac.

Here are additional useful references about handling sales taxes in QuickBooks.

Please let us know how things go. We're available to help you 24 hours a day, 7 days a week if you have any additional tax or QuickBooks concerns. Take good care of yourself!