Sales tax is always a liability. You are a pass through for the state.

Resolution for 'categorize PAID issue: 'If I do journal entries for my sales income without sales tax but I collect it how do I categorize PAID sales now? An expense or a liability?' available: Yes.

The categorize PAID 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 categorize PAID issue yourself by looking for a resolution described in the article. If it is a complex categorize PAID issue or you are unable to solve the issue, you may contact us by clicking here or by using other categorize PAID support options.

For more information about resolving issues related to categorize PAID in Quickbooks/QBO or to get support for the issue 'If I do journal entries for my sales income without sales tax but I collect it how do I categorize PAID sales now? An expense or a liability?', click the link below: