Record a discount on sales tax owed
Record a sales tax payment
To record a sales tax payment:
- Open the Transactions page.
- Locate the relevant expense transaction, or create a new expense transaction and enter the payment details.
- Under Category, select Sales Tax Payment To Government, then select the tax you're paying.
- Select Save.
To record more than one sales tax, split the transaction to include each tax.
The Chart of Accounts page and split transactions feature are only available in the web browser version of Wave.
Record a sales tax refund
To record a sales tax refund:
- Open the Transactions page.
- Locate the income transaction, or create a new income transaction and enter the refund details.
- Under Category, select Sales Tax Refund From Government, then select the tax you received a refund for.
- Select Save.
Record a discount on sales tax owed
If your business gets a discount on the sales tax you owe, you must record the full tax amount as paid. Use the split transaction feature in your web browser to record both the payment and the discount.
If you don’t have a sales tax discount account, you will need to add a new account. Create the account under Income as a discount.
To record the sales tax payment and discount:
- Log in at waveapps.com.
- On the left-side menu, click Accounting > Transactions.
- Locate the payment transaction, click the dropdown arrow to the right and select Edit more details. Or, create a new expense transaction and enter the payment details.
- Click Split transaction.
- On the first split line, enter the total amount of the tax due from your Sales Tax report. Categorize this as Sales Tax Payment to Government, then select the relevant sales tax.
- On the second split line, enter the discount amount. Categorize this as Discounts and Fees, then select your sales tax discount account.
- Click Save.