Sales tax in Texas for wholesale items used for business purposes
How do I manage sales tax on items bought wholesale and used for the business instead of being sold to a customer? (Texas)
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There is a place on the state sales tax form for taxable purchases. This is where you would put the cost of anything you purchased for resale but ended up using yourself. The tax is calculated and paid as part of the sales tax return.
How to keep track of it through out the month so you know how much to include on the tax return would depend on how much wholesale you are using yourself and how you handle your items in QuickBooks (inventory or non-inventory).
If it's a small amount and happens very infrequently, you may just want to enter it on the sales tax return and use a Sales Tax Adjustment coded to the appropriate expense account.
If you are using Inventory Items in QuickBooks or you need to keep track of a lot of stuff then you'll need a more elaborate solution.
