Hey there @RANDY25CM ! Wave is an international product and may not meet specific regional compliance/criteria especially when it comes taxes. However, Wave records all sales taxes as liabilities on sales and purchases and will give you the balance you are looking for even though your input tax won't be recorded as an asset in Wave. Your sales tax report (Settings > Sales Tax Report) will cover sales tax applied on both sales and purchases. Wave compares the two and automatically calculates the remaining tax balance owed. Albeit Wave's language may be different than what is commonly used in your region, it will still record everything correctly but with both taxes listed as liabilities.
Hey @Con , I'm not fully understanding your question. When you enter a receipt into Wave, it creates a transaction in your Transactions page which is automatically tracked in your accounting. For that reason, any taxes which are added to your receipt entries should automatically be tracked in your accounting and taxes.
I have a question. I have been using the app for a while now for my small business and I need to submit my tax that I paid. But when I try and run a report, it doesn't show that I have recorded any sales taxes (in South Africa we call it VAT) - when I go and look at my bills, its definitely recorded. How can I download a report showing all the VAT I paid for on my purchases/bills?
Thanks,
Natasha
natashavdh07@gmail.com
Hey @Natasha_P1987 , can you confirm that your taxes have been marked as recoverable and that they haven't been set up as "non-recoverable"? You can check this under Settings > Sales Taxes. If they are set up as non-recoverable, you will have to recreate the tax as recoverable and apply it to all of your necessary transactions and bills/invoices.
This article does not make clear the determining factor, WHY a tax would be recoverable or not, is it based on state laws or the nature of business? Please explain further, I still don't know if my tax is recoverable or not and if I have a right to charge my client tax at all. I am a sole proprietor/ independent contractor/ Interior Designer.
Before I begin to enter my transactions , I would like to know what determines whether I should choose recoverable or non-recoverable taxes. I am in Arkansas, if that matters. My business was just established last year (may 2020) and due to lack of knowledge , i did not keep up with everything i should have. I'd like to start this year off tracking everything properly. From my understanding , recoverable taxes allow you to deduct taxes that you have paid for necessary items , from taxes customers paid you for your products/services. Seems as if with this route , you'd have to pay less back . Do you get to choose a route ? Is there a state requirement. Please help.
If you're looking for more assistance in determining whether the particular taxes you pay are recoverable or not, and why, I would recommend reaching out to a registered CPA.
Wave's Customer Support can assist you with how to do things in Wave, but we aren't able to give accounting advice which follows the regulations of different states and countries. This is because we aren't trained accountants, so we wouldn't want you to follow the wrong advice!
This example is the same scenario and confusing. I'm a business who purchase a computer that included sales tax. So which does the sales tax go into recoverable or not?
We are a bakery in which we do not charge tax on our baked goods. We do however, keep track of our assets in which we buy supplies/equipment. Does that make our sales tax recoverable on the assets we buy?
As it turns out, determining whether a Sales Tax is recoverable or not isn't something that Wave's Customer Support can assist you with I'm afraid, as we aren't trained accountants. I would recommend reaching out to a registered CPA for advice in this case
@CrystalBlue@gmbakery
Hi there! I wanted to reach out to you because I saw your posts and as a professional tax preparer and consultant, I have dealt with the question on whether a certain tax is recoverable or not, more times than I can count! Having said that, if you (or anyone else reading this) would like any advice or just another set of eyes when looking at whether or not you are filing a sales/use tax appropriately, I would be more than happy to offer a helping hand. I am NOT trying to market myself or my business, but rather offering some free professional-grade tax advice from someone who has been around and made silly, but common, mistakes. (My only caveat is that I can only give you advice if you are located within the United States… as much as I love Canada and am hoping (fingers crossed) to move to the Toronto area, I do not have any official credentials with the Canadian government taxation officials nor with any of the Canadian provincial counterparts (not yet at least!) )
So, if you, or anyone still needs assistance, please don’t hesitate to send me a message through wave or to shoot me an email at corey@cmstaxes.com . (Again, I am not soliciting business, but offering to answer any questions on this topic, since Wave is unable to do so. Any advice given is free of charge)
I am new to Wave and I use it for a church in Canada. We pay HST on all purchases but don't charge HST since we don't sell anything. Our source of income is donations. I need to track the amount of HST paid in order to apply for a rebate from the government, and I need to include the tax amount in expense reports. I can't set up the HST as a recoverable tax because doing that will exclude it from the expense amounts, but if I set it up as nonrecoverable, it doesn't show up in any report that I have found. Isn't there a way to track nonrecoverable taxes paid? If there isn't, what is the use of nonrecoverable taxes? Any help will be appreciated.
Comments
Hey there @RANDY25CM ! Wave is an international product and may not meet specific regional compliance/criteria especially when it comes taxes. However, Wave records all sales taxes as liabilities on sales and purchases and will give you the balance you are looking for even though your input tax won't be recorded as an asset in Wave. Your sales tax report (Settings > Sales Tax Report) will cover sales tax applied on both sales and purchases. Wave compares the two and automatically calculates the remaining tax balance owed. Albeit Wave's language may be different than what is commonly used in your region, it will still record everything correctly but with both taxes listed as liabilities.
How do I enter receipts o bills so that my recoverable taxes shows up in my reports
Hey @Con , I'm not fully understanding your question. When you enter a receipt into Wave, it creates a transaction in your Transactions page which is automatically tracked in your accounting. For that reason, any taxes which are added to your receipt entries should automatically be tracked in your accounting and taxes.
Let us know if you have any further questions.
I have a question. I have been using the app for a while now for my small business and I need to submit my tax that I paid. But when I try and run a report, it doesn't show that I have recorded any sales taxes (in South Africa we call it VAT) - when I go and look at my bills, its definitely recorded. How can I download a report showing all the VAT I paid for on my purchases/bills?
Thanks,
Natasha
natashavdh07@gmail.com
Hey @Natasha_P1987 , can you confirm that your taxes have been marked as recoverable and that they haven't been set up as "non-recoverable"? You can check this under Settings > Sales Taxes. If they are set up as non-recoverable, you will have to recreate the tax as recoverable and apply it to all of your necessary transactions and bills/invoices.
This article does not make clear the determining factor, WHY a tax would be recoverable or not, is it based on state laws or the nature of business? Please explain further, I still don't know if my tax is recoverable or not and if I have a right to charge my client tax at all. I am a sole proprietor/ independent contractor/ Interior Designer.
Before I begin to enter my transactions , I would like to know what determines whether I should choose recoverable or non-recoverable taxes. I am in Arkansas, if that matters. My business was just established last year (may 2020) and due to lack of knowledge , i did not keep up with everything i should have. I'd like to start this year off tracking everything properly. From my understanding , recoverable taxes allow you to deduct taxes that you have paid for necessary items , from taxes customers paid you for your products/services. Seems as if with this route , you'd have to pay less back . Do you get to choose a route ? Is there a state requirement. Please help.
Hi @gmercatante23_ and @LaShondaW !
If you're looking for more assistance in determining whether the particular taxes you pay are recoverable or not, and why, I would recommend reaching out to a registered CPA.
Wave's Customer Support can assist you with how to do things in Wave, but we aren't able to give accounting advice which follows the regulations of different states and countries. This is because we aren't trained accountants, so we wouldn't want you to follow the wrong advice!
This example is the same scenario and confusing. I'm a business who purchase a computer that included sales tax. So which does the sales tax go into recoverable or not?
We are a bakery in which we do not charge tax on our baked goods. We do however, keep track of our assets in which we buy supplies/equipment. Does that make our sales tax recoverable on the assets we buy?
Hi @CrystalBlue and @gmbakery !
As it turns out, determining whether a Sales Tax is recoverable or not isn't something that Wave's Customer Support can assist you with I'm afraid, as we aren't trained accountants. I would recommend reaching out to a registered CPA for advice in this case
@CrystalBlue @gmbakery
Hi there! I wanted to reach out to you because I saw your posts and as a professional tax preparer and consultant, I have dealt with the question on whether a certain tax is recoverable or not, more times than I can count! Having said that, if you (or anyone else reading this) would like any advice or just another set of eyes when looking at whether or not you are filing a sales/use tax appropriately, I would be more than happy to offer a helping hand. I am NOT trying to market myself or my business, but rather offering some free professional-grade tax advice from someone who has been around and made silly, but common, mistakes. (My only caveat is that I can only give you advice if you are located within the United States… as much as I love Canada and am hoping (fingers crossed) to move to the Toronto area, I do not have any official credentials with the Canadian government taxation officials nor with any of the Canadian provincial counterparts (not yet at least!) )
So, if you, or anyone still needs assistance, please don’t hesitate to send me a message through wave or to shoot me an email at corey@cmstaxes.com . (Again, I am not soliciting business, but offering to answer any questions on this topic, since Wave is unable to do so. Any advice given is free of charge)
Hope you are all well and staying safe,
Corey
I am new to Wave and I use it for a church in Canada. We pay HST on all purchases but don't charge HST since we don't sell anything. Our source of income is donations. I need to track the amount of HST paid in order to apply for a rebate from the government, and I need to include the tax amount in expense reports. I can't set up the HST as a recoverable tax because doing that will exclude it from the expense amounts, but if I set it up as nonrecoverable, it doesn't show up in any report that I have found. Isn't there a way to track nonrecoverable taxes paid? If there isn't, what is the use of nonrecoverable taxes? Any help will be appreciated.