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Posted by RobertM on October 9, 2006, 2:52 pm
Please log in for more thread options It is my understanding that the Use Tax is based on the cost to the company,
not the retail value. I pay this every Quarter. First create an account
called, "Sales Tax Expense". Then click on Pay Sales Tax, Click on Adjust,
Click on Adjustment Account and enter the amount charging it to the Sales
Tax Expense account. Taking things from inventory for business use is a
separate issue from the tax thereon and can simply be charged to your office
equipment repair account. I created two accounts for this so I always know
which items were previously taxed and which ones weren't. When tax time
rolls around, look at the account showing total items removed from inventory
that weren't previously taxed so you can figure what you owe.
Bob
> Going the customer route would work, but he would be paying sales/use
> tax on the retail value of the parts, not the costs? I am still
> learning QB so I could be missing something.
> TK
>
> Laura wrote:
>> > Hello Group,
>> > How to pay the State Sales & Use Tax for material that was purchased
>> > with
>> > resale tax-exempt status.
>> >
>> > Here is the situation: I run a small computer business. I built a
>> > Computer
>> > for the company using tax exempt parts.
>> >
>> > Now I have to pay the "Sales and Use Sales Tax" (GA requirement). How
>> > can
>> > I do that in QB?
>> >
>> > Should I add my company as a new customer and create an Invoice, and
>> > then.?
>> >
>> > Thanks in advance
>>
>> That's certainly one way to do it. Treat your company as a customer via
>> an
>> invoice. Then just pay that invoice and just deposit that check back into
>> the company.
>>
>> You could also do a journal entry to debit purchases and credit sales tax
>> payable. Then just cut a check to the state for the accumulated sales tax
>> due. If this is a one time event then you could just use Write Checks to
>> the
>> state posting it to the purchase account.
>>
>> If these parts are posted to inventory then I would probably go with the
>> customer route so that the inventory is adjusted properly. With method 2
>> you
>> would need to do an inventory adjustment to remove those parts used.
>
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