Attention: This FAQ does not apply to all businesses. Please consult a professional to learn more about what your business can claim and about which sales taxes can be recoverable taxes.
Depending on the tax process where your business is located, you may have to pay sales taxes to your government and possibly receive a refund in the future. This process is called remitting sales taxes.
Example: you owed $500 in taxes to the government for collected income. The government, in turn, owed you $600 in taxes for paid expenses. You then receive a check in the total of $100 for your Income Tax Return.
To account for this in Wave, you need to record your Sales Tax payments and reimbursements on one Journal Entry.
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