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Review your sales tax return with the Sales Tax AI Agent (Beta) in QuickBooks

by Intuit• Updated 4 weeks ago

The QuickBooks Online Sales Tax AI Agent (Beta) is a tool that helps you check your sales tax return before you file it. It compares the income on your Profit and Loss report with your sales tax return’s net sales, to find potential differences. The agent then highlights these transactions and suggests fixes to help you file accurately.

Note: The Sales Tax AI Agent is a beta feature with limited availability. It is currently available only on the QuickBooks Online web version.


What the Sales Tax AI Agent (Beta) does

The Sales Tax AI Agent compares the income figures from your Profit and Loss with net sales on your sales tax return for the same period. It then shows any difference between the two figures, lists the transactions that have caused this difference, and gives you suggestions on how to reconcile these differences. In some instances, the differences are not an issue and can be ignored.

It can help you spot issues such as:

  • Transactions that have no sales tax rate selected.
  • An income type transaction using an expense an expense type chart of account.
  • An expense type transaction using an income type chart of account.

Note: The Sales Tax AI Agent highlights possible issues and provides options. It does not make changes for you.


Review your sales tax return

Follow these steps to check your sales tax return using the AI Agent. Before you start, make sure you have an open sales tax period in QuickBooks Online that is ready to review.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. In the Filings tab on Overview page, find the open sales tax period you want to review.
  3. Select the â–Ľ dropdown next to the Prepare return, then select Pre-file check. This opens the Sales Tax AI Agent.
  4. You can also open the Sales Tax AI Agent by selecting Prepare return.
  5. On the prepare return screen, find the pop-up message "Check your return before you file" and select View pre-file check.

The AI Agent compares your Profit and Loss income with the net sales figure of the sales tax return and scans your transactions.

When the check is complete, the Agent shows if any differences were found.

  • If no issues are found: You’ll see a message such as “We found 0 transactions that create a difference.” You can move on to Prepare return portion of the sales tax centre.
  • If issues are found: You’ll see the total difference at the top of the page, for example CA $1,100. You can select Explain this to me to highlight the values that make up any difference. Using the above difference, it could mean your Profit and Loss shows –CA $550 while your sales tax return shows CA $550. Underneath this section you’ll see each flagged transaction listed. These transactions are grouped together based on the reason they were flagged.
  1. Select See how to resolve to view AI powered guidance. This will review the transaction data and provide a reason why this difference may have arisen. You can use this tool to guide your review.
  2. If you need to make changes to a listed transaction, select View to open the transaction.
  3. Make any updates needed, such as:
    • Choosing the correct sales tax code.
    • Changing the account or category.
  4. Select Save when finished.
  5. If a difference is intentional, select Ignore to leave it as it is. 

As you work, corrected items move to the Done tab and ignored ones move to the Ignored tab. You can run the Agent again to see if the difference is resolved. Your sales tax income reconciliation is complete when you are confident you can explain any remaining differences.

Next steps

Once your review is complete, you can proceed to Prepare return to file your sales tax return.


Need more help? Master the new QuickBooks Online user interface with QuickBooks Training. Learn where to find your favourite features and how to use Intuit AI Agents effectively. Sign up now.


FAQs

Does the Sales Tax AI Agent change my sales tax return automatically?
No. It only highlights issues and suggests what to do. You choose what to update.

Do I need to fix every flagged item?
Not always. You should simply be able to explain any remaining difference before filing.

Is this the same as CRA?
No. CRA is your tax agency. The Sales Tax AI Agent is a QuickBooks tool that helps you review your figures before submitting your return.