Hey @benjofisch! The accrual option your Sales Tax report includes tax on unpaid invoices and bills (including invoices that have been sent and are not yet overdue). The cash basis option includes tax only on paid transactions in your bank or credit card accounts. If you only have one invoice that you have sent and not collected on, the discrepancies may be coming from other transactions. Reconciling your account can help to find out where these discrepancies lie. Check out this reconciliation guide for some tips.
Hi Wave Team,
If using the Wave receipts app, and I add a tax to the receipt, why does the full transaction amount post to my expense account (instead of the subtotal to the expense account, and the tax to the sales tax account)?
I operate from a country within the European Union and been trying to find a way to close off a sales tax report so that I can distinguish which transactions have been included in the vat return and which didnt. Is there a way of doing so because I couldn't find it in the Sales Tax report.
Hi @sareekate , thanks for bringing this to our attention as this is definitely an issue on our end. The team has added it to their to do list although we don't have an exact ETA as to when it will be accomplished. In the meantime, please apply the sales tax again in the Transactions page as a workaround until this has been implemented. Thanks you.
My problem is, I, too, understand the two reports now available rather than the Tax Audit report, however the Transaction Report does not balance to the Sales Tax Report. Surely these figures should equal? i.e. I have one set of figures on the Sales Tax Report and these do not match what is on the Transaction Report. Why not?
In reading a Wave Help post the author states "It’s important to remember that the Tax amount on sales and the Tax amount on purchases that you see on the Sales & Purchases half of this report often won’t match the debits and credits totals in the account transactions report. This report shows the net amount of sales and purchases and is intended to be a tool to help you easily complete your tax filing".
This is not helpful. Why don't they match? As such, how can I show our tax authority exactly what transactions made up the figures on my tax return?
Hi @VickiC! Thanks for reaching out here! The tax amount on sales is recorded in the account as a credit, and tax amount on purchases is recorded in the account as a debit. There is an expectation that total credits would equal total taxes on sales on the report, and total debits would equal total taxes on purchases on the report. However, taxes on refunded sales are debits and taxes on purchase refunds are credits - which is why it mentions "the report shows the net amount of sales and purchases." In addition, payments to the government are debits, and refunds from the government are credits, and those amounts are reflected in the bottom half of the report.
Maybe I am missing something or maybe My state figures sales tax a bit differently, but they require me to enter my gross sales. This would be the same term as "Sales Subject to Tax" on the Sales Tax Report. Now when this comes to serving and dividing many cities it can be a bit cumbersome to add all these manually. The column next to it is added (Tax Amount on Sales), why not show totals for all columns?
Comments
Hey @benjofisch! The accrual option your Sales Tax report includes tax on unpaid invoices and bills (including invoices that have been sent and are not yet overdue). The cash basis option includes tax only on paid transactions in your bank or credit card accounts. If you only have one invoice that you have sent and not collected on, the discrepancies may be coming from other transactions. Reconciling your account can help to find out where these discrepancies lie. Check out this reconciliation guide for some tips.
Hi Wave Team,
If using the Wave receipts app, and I add a tax to the receipt, why does the full transaction amount post to my expense account (instead of the subtotal to the expense account, and the tax to the sales tax account)?
Hi Wave Team,
I operate from a country within the European Union and been trying to find a way to close off a sales tax report so that I can distinguish which transactions have been included in the vat return and which didnt. Is there a way of doing so because I couldn't find it in the Sales Tax report.
Thanks
Hi @sareekate , thanks for bringing this to our attention as this is definitely an issue on our end. The team has added it to their to do list although we don't have an exact ETA as to when it will be accomplished. In the meantime, please apply the sales tax again in the Transactions page as a workaround until this has been implemented. Thanks you.
My problem is, I, too, understand the two reports now available rather than the Tax Audit report, however the Transaction Report does not balance to the Sales Tax Report. Surely these figures should equal? i.e. I have one set of figures on the Sales Tax Report and these do not match what is on the Transaction Report. Why not?
In reading a Wave Help post the author states "It’s important to remember that the Tax amount on sales and the Tax amount on purchases that you see on the Sales & Purchases half of this report often won’t match the debits and credits totals in the account transactions report. This report shows the net amount of sales and purchases and is intended to be a tool to help you easily complete your tax filing".
This is not helpful. Why don't they match? As such, how can I show our tax authority exactly what transactions made up the figures on my tax return?
Hi @VickiC! Thanks for reaching out here! The tax amount on sales is recorded in the account as a credit, and tax amount on purchases is recorded in the account as a debit. There is an expectation that total credits would equal total taxes on sales on the report, and total debits would equal total taxes on purchases on the report. However, taxes on refunded sales are debits and taxes on purchase refunds are credits - which is why it mentions "the report shows the net amount of sales and purchases." In addition, payments to the government are debits, and refunds from the government are credits, and those amounts are reflected in the bottom half of the report.
Maybe I am missing something or maybe My state figures sales tax a bit differently, but they require me to enter my gross sales. This would be the same term as "Sales Subject to Tax" on the Sales Tax Report. Now when this comes to serving and dividing many cities it can be a bit cumbersome to add all these manually. The column next to it is added (Tax Amount on Sales), why not show totals for all columns?