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Sales Tax Payments in Wave

SongahmSongahm Member Posts: 6

My Sales Tax Report shows what I owe on my monthly sales tax liability. How do i show i paid my sales tax now. There is no expense line item for sales tax. I just want to be able to see my tax liability less what i paid.

edited January 28, 2019 in Accounting Technical Support

Comments

  • SamdSamd Member Posts: 552 ✭✭✭

    Hey @Songahm, recording a tax remittance in Wave will depend on which version you are using. If you are on our original system, you can show the decrease of your tax liabilities account by using a journal transaction. In order to record a government tax payment in your Wave account, here's what you will want to do:

    -Head into your Wave account and select the Accounting tab on the left hand side
    -Head over to the top of the page and select Journal Transactions
    -We'll need to create a new transaction by clicking "Add a Transaction"
    -If you are paying your tax owed to the government you will want to Debit Sales Tax Payable and Credit the Payment Account these funds were payed from (if you are receiving tax from the government you will want to Debit Payment Account and Credit Sales Tax Receivable).
    -Last step will be to delete the payment transaction from your transactions page since we've accounted for this payment with the Journal Entry.

    Of course, if you're in our updated system, this process is a little bit smoother, and you should be able to categorize the expense on the transaction page as "Sales Tax Payment to Government" followed by the tax in question.

  • SongahmSongahm Member Posts: 6

    Thanks. I do have the latest version and yes I was able to record this as you described. Thanks

  • sammcsammc Member Posts: 0

    Hi There,
    On my invoices I list GST and collect it from customers. Wave elegantly displays how much GST is owed in the 'Reports' tab. However, I want to record payment of GST to the Canadian Government so that it no longer appears as a liability. However, I can't find any way to record GST as an expense. My only thought is to mark it as an expense in "Accounts Payable" under the "Transactions" tab. Any suggestions? Your help in this matter is appreciated.

  • ConnorMConnorM Member Posts: 1,229 ✭✭✭

    Hey @sammc! I've merged your post into a discussion that has a solution here! Let me know if this helps :)

  • StevR44StevR44 Member Posts: 1

    Hi there, how can I get my regular expenses like meals, fuel etc. to show up on the tax report? I import my transactions through the banking connection so all the data is there. I know there is an option per transaction to click "Tax included". Do I need to do that for each transaction so it will appear on the tax report?

    edited June 15, 2020
  • ConnorMConnorM Member Posts: 1,229 ✭✭✭

    Hey @StevR44! Thanks for reaching out here. Do those expenses have a tax rate within Wave applied to them? If so, can you make sure that your tax is marked as Recoverable? You can do so by going to Settings > Sales Tax > click the pencil icon beside the tax rate you're looking to include, and make sure that 'This is a recoverable sales tax' box is ticked off. If it is, great! You can just click the 'tax included' box within those transactions. If not, then you will need to create a new tax rate and make sure it is recoverable, and then apply it to those transactions. I hope that helps!

  • BRTBRT Member Posts: 1

    @Samd
    Hi Sam,

    I am new to this software and am having trouble categorizing my transactions.
    I have the same issue as Songahm- I made a payment out of my corporate account to pay my Goods and Services tax to the Canada Revenue Agency. I select "Sales tax payment to government" to categorize it, as described below, but it just says "no results found", and won't apply the category. All the other categories work, just not this one.

    Is there a reason this isn't working?

    Thanks.

    @Samd said:
    Hey @Songahm, recording a tax remittance in Wave will depend on which version you are using. If you are on our original system, you can show the decrease of your tax liabilities account by using a journal transaction. In order to record a government tax payment in your Wave account, here's what you will want to do:

    -Head into your Wave account and select the Accounting tab on the left hand side
    -Head over to the top of the page and select Journal Transactions
    -We'll need to create a new transaction by clicking "Add a Transaction"
    -If you are paying your tax owed to the government you will want to Debit Sales Tax Payable and Credit the Payment Account these funds were payed from (if you are receiving tax from the government you will want to Debit Payment Account and Credit Sales Tax Receivable).
    -Last step will be to delete the payment transaction from your transactions page since we've accounted for this payment with the Journal Entry.

    Of course, if you're in our updated system, this process is a little bit smoother, and you should be able to categorize the expense on the transaction page as "Sales Tax Payment to Government" followed by the tax in question.

  • BarsinBarsin Member, Moderator Posts: 2,041 ✭✭✭

    Hey there @BRT

    In order for a sales tax to appear under the Sales tax payment to the government category, you'll have to check that you've created your sales taxes and attributed them to your transactions. Head to Settings > Sales taxes > See if you have any sales taxes here. If you do, and you've created your transactions with your sales taxes on it, you should find them appear on your category list.

    Check out this article for more assistance on making a sales tax payment to the government.

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