QB Issue Resolution:

How to collect sales tax in the following situation? Client does annual contracts for handyman service. Some services are taxable and some are not. He invoices for the down payments and then splits the remaining balance into 11 monthly payments and invoices monthly. Should we include sales tax in the initial billing for the down payment? Even though the down payment may not cover the entire taxable amount of service? Any insight would be greatly appreciated.

This depends on your state sales tax office.

 

IF, if the state requires that you report sales tax on accrual basis (most do) then yes, you are required to collect the full amount of sales tax due for the contract when it is initially written.

 

Call the state sales tax office and find out.

Resolution for Issue 'Sales Tax' available: Yes (Solved).
Source: Intuit Community forum.

Sales Tax: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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