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hendersonlock
February 16, 2021
Question

Sales tax amount on sales tax center does not match sales tax liability report

  • February 16, 2021
  • 2 replies
  • 0 views

Several months ago I put in a ticket with QB regarding the total sales on my sales tax liability report not tying to my sales reports and actual data. We are going on 5 months with no resolution. I got an email for QB indicating they are closing this issue unresolved -- though they might resolve it in the future.  I have learned to calculate my own taxes and not trust QB. I am wondering if anyone else has had similar problems with other reports or if it is just limited to the Sales Tax Liability Report being incorrect.

2 replies

MaryLandT
MaryLandT
February 16, 2021

This isn't the kind of service we want you to experience, hendersonlock.

 

Let me make it up to you and ensure you're able to know why the sales tax amount doesn't match with the Sale Tax Liability report.

 

The first thing you can check is the Sales Tax Payable account. QuickBooks sets up this special account and won't let you delete it.

 

When troubleshooting sales tax issues, start from the beginning by checking your sales tax preferences, sales tax items and sales tax groups to be sure they are set up correctly.

 

You can follow these solutions on how to fix the issue:

 

Solution 1: Ensure the dates match

 

Check the Sales Tax Liability Report ending date and make sure it matches the date in Show sales tax due field:

  1. Go to QuickBooks Reports menu.
  2. Select Vendors & Payables, then Sales Tax Liability.
  3. Delete the From date.
  4. Ensure the To date on the report matches the date in Show sales tax due through box on the Pay Sales Tax window.

Solution 2: Ensure your Preference is correct

 

Your Sales Tax Preference controls the basis of the Pay Sales Tax window, but you can change the basis of your Sales Tax Liability Report (STLR). Ensure the basis are the same.

  1. Go to QuickBooks Edit menu.
  2. Pick Preferences, then Sales Tax.
  3. On the Company Preferences tab, note the selected basis in the When do you owe sales tax? box.
    • As of invoice date - Accrual basis
    • Upon receipt of payment - Cash basis.
  4. Ensure your STLR basis matches the preference. If not, change the report basis.

Solution 3: Audit the Sales Tax Payable Account

  1. In the STLR, quickzoom (double click) the amount in the Sales Tax Payable as column.
  2. Look for sales tax payments, journal entries, adjustments or regular checks (paying sales tax liability) and check the transactions dates.
  3. The dates on these transactions impact the numbers on the STLR.
  4. Either adjust the date of these transactions or adjust the ending date of the Sales Tax liability report to include or exclude applicable sales tax payments, journal entries, adjustments or checks.

I'm adding these links for future guide:

Let me know if you need additional information by commenting below. I'll be right here whenever you have follow-up questions about your STLR.

L
lauralee9
February 19, 2021

Where is the Sales Tax Preference option now? I can't find it anywhere in the settings with some of the recent changes to QBO. Thanks! 

Candice C
Candice C
February 19, 2021

Good morning, @lauralee9. 

 

Thanks for joining in on this thread. I can point you in the right direction of where the Sales Tax Preference option is in your QuickBooks Online (QBO) account. 

 

If you're referring to Solution 2 from my colleague above, those steps are for QuickBooks Desktop (QBDT). Allow me to provide you with the right steps. 

 

  1. Go to the Reports tab on the left-hand menu bar. 
  2. Enter "Sales Tax Liability" in the search bar and click on it. 
  3. From there, you can change any preferences from the report. 

 

To see additional settings for sales tax, press the Tax tab and go to the Sales Tax Settings option in a blue hyperlink. In addition, here's a guide that can help you and your business in the future: Sales tax. 

 

These steps should do the trick. If you have any trouble along the way, just let me know. I want to make sure that you're able to get back on track. I'll always be here to lend a helping hand. Have a great day! 

J
jackpot
August 2, 2023

the issue im having right now is that on my sales tax liability  report QB plain has the math wrong. EX: taxable sales 23,958.92 @ tax rate 1.5% QB says is 398.49 BUT it actually is 359.38.  ive been using QB desktop for years now and this is a 1st time for this issue. not even sure what i do .

 

S
SarahannC
August 2, 2023

It can be frustrating when the calculations are incorrect. No worries, there are a few things you can do to address this problem, jackpot.

 

To begin, I recommend double-checking the data recorded in the system. Make sure the tax rate was entered in QuickBooks accurately. 
 

If everything is correctly set up, make sure to update QuickBooks to the latest release. Doing this can address bugs or issues in the previous versions. Then, let's rebuild your company file data to fix data-related issues on a company file. The steps below will guide you through the process.

 

  1. Go to File, Utilities, and then select Rebuild Data.
  2. QuickBooks will ask to make a backup before it rebuilds your company file. Select OK.
  3. Select where you want to save your backup, then OK. Don’t replace another backup file. Enter a new name in File name and select Save.
  4. Select OK when you get the message Rebuild has completed.

 

Once done, go to the File menu and select Verify Data to check for additional damage.

 

If you have any specific questions, need troubleshooting assistance, or seek general guidance, the Community is always available to ensure your QuickBooks experience is seamless. Feel free to share your inquiry, and I'll be prompt in assisting you.

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