Balancing / Accounting for payments to Government Sales Tax

SortITSortIT Member Posts: 21

Hi all,
I'm in Ireland so this may be slightly different to normal, but goes like this:

I have 2 rates of Sales Tax, lets just say A and B. I pay my sales tax to Government every 2 months.

So, for the first 2 months of 2019, it was like this:
Sales Tax A: I owe the Government 452.83
Sales Tax B: I owe the Government -348.71 (Purchased more product than I sold)

Net owing Sales Tax to Government: 104.12

Now, I want to balance the books on Wave. I know that I can do this by going to Accounting - Transactions - Add Expense - Sales Tax to Government

However, with the minus amount in one of the Sales Tax, do I put it as a 'Deposit' or 'Withdrawal' - I thought I would try a 'Withdrawal' and put in the MINUS figure - will that work? (Makes sense, as it's always a withdrawal as i'm paying the Government)

Thanks

Comments

  • SortITSortIT Member Posts: 21

    Anyone??

  • JamieDJamieD Administrator Posts: 675 admin

    Hey @SortIT ! As you said, what might be best here is creating this as an expense transaction and making it a withdrawal (since it's a payment that is coming out of your bank account, as an expense). As for the total, you would put the minus figure if that is the amount that's actually owed to the government/the amount that you actually paid out of your account.

  • SortITSortIT Member Posts: 21

    Thanks. Have you any idea how I can get the highlighted area to balance to 0.00? (Like above)

    It is technically a refund from Government Tax, but, when I do a 'Deposit' under Category "Refund from Government Tax" and choose the correct Tax, it doesn't balance the attached?!

    You will see here the Accounting Transaction

  • SortITSortIT Member Posts: 21

    Sorry, here will see in the Sales Tax report that it's not balancing back to 0.00 on the 23% Tax Rate

  • SortITSortIT Member Posts: 21

    Never mind, I was putting in the wrong dates. Once I adjusted the deposit (tax refund) back to 28th Feb (I was calculating for Jan/Feb 2019) it all balanced.... happy days!

  • SophiaSophia Administrator Posts: 147 admin

    Hey @SortIT glad to hear you figured it out! :)

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