When the Sales Tax Liability Report (STLR) and Pay Sales Tax window show different tax due amounts, they may not have the same date ranges and/or report basis.
Fix this issue by performing one or all of the following solutions in the order shown.
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:
- Go to QuickBooks Reports menu > Suppliers & Payables > Sales Tax Liability.
- Delete the From date.
- 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 STLR. Ensure the basis are the same.
- Go to QuickBooks Edit menu > Preferences > Sales Tax.
- 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.
- Ensure your STLR basis matches the preference. If not, change the report basis.
Solution 3: Audit the Sales Tax Payable Account
- In the STLR, quickzoom (double click) the amount in the Sales Tax Payable as column.
- Look for sales tax payments, journal entries, adjustments or regular checks (paying sales tax liability) and check the transactions dates.
- The dates on these transactions impact the numbers on the STLR. 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.
Solution 4: Check for future-dated transactions
A future-dated transaction may cause the issue. The Pay Sales Tax window can show a lower number than the Sales Tax Payable column of the STLR because the Pay Sales Tax window reflects some future transactions (though not invoices or sales receipts).
Set the STLR to All Dates and see if it matches the Pay Sales Tax window.
Solution 5: Other Troubleshooting Tips
- 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.
- Check the Sales Tax Payable account. QuickBooks sets up this special account and will not let you delete it. You can rename it, but regardless of what you name it, QuickBooks records all Sales Tax transactions to that account.
- Do not create sub-accounts under the Sales Tax Liability account.