Quickbooks is not computing my sales tax liability report correctly it is off by a lot. Any answers?

Hi there, @9130 3494 4845 4036. 

Thanks for your first post. It's my pleasure to help check the discrepancy of your sales tax due.

First off, let's check the report's accounting method. If the state wants you to report sales tax based on a cash basis, then the report also needs to be on a cash basis.

You can switch the report from cash to accrual basis and vice versa to get the exact result. Here's how:

1. Go to the Reports tab at the left menu, then search for Sales Tax Liability Report. 
2. Click it open, then set the dates and switch the Accounting method to Cash, then Accrual.
3. Click Run report to refresh the page.

Once done, try to compare the figures to the Sales Tax section. 

You can also check out these articles as your guide while managing sales taxes in QBO:

• Sales tax in QuickBooks Online
• Set up your sales tax

Additionally, read through this article to learn more about some of the few things that you can do with reports in QBO: Run reports in QuickBooks Online.

Post some more here on the Community page if you have additional concerns. I'm always around to help. Take care!

Hi 9130 3494 4845 4036,

Hope you’re doing great. I wanted to see how everything is going about the sales tax concern you had yesterday. Was it resolved? Do you need any additional help or clarification?

If you do, just let me know. I’d be happy to help you at any time.

Looking forward to your reply. Have a pleasant day ahead!

I have QB on a Mac and it was doing it correctly but now it is not.  When I get the report up it doesn't have a place to mark cash.  

I have the same problem.  My sales tax reports were just fine until sometime in 2021 and ever since then the report show zero (no matter how much sales tax is noted on the invoices) and i'm having to do it manually.  UGH!  There probably was a programming change and it messed up the reporting.  I use the % in the sales tax section on the invoices so that isn't the issue.  PLEASE HELP, this is wasting my time. 

We understand how you feel, @sharon35.

We know you're putting so much effort and time into getting a resolution to your concern with your sales tax liability report showing a zero rate. Rest assured, I'm here to ensure you get routed to the right direction of support to sort out this query.

I've checked here on my end and found that there's an ongoing investigation that users are experiencing the same problem with their reports. Please know that our team is aware of this matter and is currently implementing measures to fix it.

In the meantime, I suggest contacting our QuickBooks Online Support Team so they can add you to the list of affected users. You'll be notified via email once this issue is resolved.

To ensure that we address your concern accurately, you can check our available hours when contacting our support.

In addition, I've added these handy articles that can help you with keeping track of and handling reports in QBO:

• Run reports in QuickBooks Online
• Customize reports in QuickBooks Online

Please bear with us as we're working on this concern with Sales tax liability reports. Keep me posted if you have any other questions or concerns about managing your transactions in QuickBooks Online. I'll be around for you. Keep safe always.

Has this reporting issue been resolved? My sales tax liability report is off for 2022 and customer service doesn’t seem to understand.

Has this issue been resolved? I’m encountering the same issue for 2022 and customer service seems to have no clue why.

Let's make sure we'll be able to resolve your sales tax issue, K Gallo.

QuickBooks calculates the total sales tax rate based on your customer's sales tax exempt status, where you sell and ship and your service or product's sales tax category. May I know what specific report are you running when trying to comparing the totals with the Sales Tax Liability report?

If the total sales on your Sales Tax Liability report is different with the Profit and Loss report total income, the total sales and total income won't always match since there are transactions that can appear in a data file that will make it unlikely for the both reports to match. You'll want to compare the two reports to see which transactions are causing the discrepancies instead.

Another reason why your reports aren't matching it's because of the accounting method that you're using. Each method reports your income and expenses differently. When you use the cash basis method, you report your income once you receive it. But when you use the accrual basis, you report your income when you bill it. You'll want to check what method are you using when running the reports. To change change the accounting method, you can follow the steps below:

1. Select Settings ⚙, then select Account and settings.
2. Go to the Advanced tab.
3. In the Accounting section, select the Edit ✎ icon.
4. Choose the Accounting method.
5. Select Save, then Done.

To dig more on the difference between the two different kinds of reporting method, check out this article for more details: Choose Between Cash And Accrual Accounting Methods In QuickBooks Online.

Furthermore, you can filter specific information to make sure your report will show the data you need. Go through this article for your reference: Customize Reports In QuickBooks Online. 

Keep me posted of you need anything else about sales tax. Remember, the Community is always right here to attend to all your needs. Have a great day!

I have found this Sales Tax Liability report is an issue in multiple clients' QBO. It is not the case of wrong accounting method, I'm very familiar with calculating sales tax here. I tried customer support but they did not help me. Is this issue with the QBO sales tax report function going to be resolved soon? It is very inconvenient for people who do not know how to manually check their sales tax calculations and rely on the QBO report. Not to mention the cost of QBO for some people and not having the ability to use such a basic QB function, it's a little frustrating. 

Thank you.

This has been an ongoing report as long as I've used QBO.  When will this be resolved.  In Texas we report the gross sales and then taxable and non-taxable.  The QB sales tax liability report does not calculate gross sales.  It does not include out of state client invoices.  The sales tax liability report needs to tie to the P& L for audit purposes. Also, even if the sales tax liability report is run on a cash basis, it will not include client retainers when they are applied to an invoice.  Do the makers of this software understand cash and accrual?

When will this be fixed?

The issue is not related to the accounting method. 

I understand what you're going through under the sales tax liability report, @rgm, and @Lala. With that, we recommend calling our support team in QuickBooks Online.

Our phone representative will look into the issue and investigate further why you receive this kind of error. They can review your account in a private setting for your safety.

Please check our support hours so you may reach out to us at a time that works for you.

Follow this guide:

1. Log in to your QuickBooks Online account.
2. Click the? Help button at the top right corner.
3. Go to the Search tab, then select Contact Us.
4. Enter a brief conversation about your situation, then click Continue.
5. Choose a way to join us: Get a callback.

Plus, this article will let you understand the difference between the Cash and Accrual methods. It generates a report on your income and expenses differently. See the detailed steps: Choose between cash and accrual accounting methods in QuickBooks Online.

I appreciate your patience while we are looking for remedies for your sales taxes. Please know that we are here to support your growing industry. Keep me notified through your email. Have a wonderful day.