Sales Tax

How do I map tax as a line item as a journal entry for QuickBooks Online?

How to add tax to a liability account in QuickBooks Online

How do I add the tax?

Whether you add tax as a line item or use a code, QuickBooks places funds into sales tax payable. If you use QuickBooks AST, you can no longer map codes. You can use AST or map as a line item, if AST is incompatible.

In this example, we will change the income account of the sales tax item to sales tax payable.

  1. In QuickBooks Online, find the item whose name is SalesTax.
  2. Click edit.
  3. Ensure its income account is sales tax payable:
  4. In QuickBooks, view your sales tax liability report and verify the amounts are correct.