Is it possible for the liabilities for Sales taxes in QBO to be recognized only after the invoice has been fully paid?

Hey there, @elsa-sewzeal-com.

Thanks for bringing your concern to QuickBooks Community. 

For me to better understand the issue, I'd appreciate it if you can tell us what report did you use to show these data in QuickBooks Online (QBO). 

Upon checking the Sales Tax Liability Report, QuickBooks will only show the taxable sales on an Accrual basis if the invoice isn't paid. 

On the other hand, the report will only reflect the taxable amount on a Cash basis once the invoice is already paid. 

Please add your reply to this thread so I can get back to you. Have a good one.

I am looking under Taxes > Sales Taxes and then under Reports "Tax Liability Report". When using cash basis it records a sales tax liability even when an invoice is partially paid. Any way to set up QBO to record the sales tax liability only when the full amount of the invoice is paid?

Thanks for getting back here in this thread, Elsa. Allow me to join and share additional information about Sales Tax Liability.

When entering sales taxes, recording these invoices only when they are paid in the full amount is unavailable. Yes, the remaining taxable amount (partial payment) will show on a cash basis. On the other hand, the total amount of the invoice will still reflect on an accrual basis since this hasn't been fully paid.

Thus, you'll need to record these payments every time you receive them. Once the invoice is fully paid, this will zero out your sales taxes.

Moreover, you can check out this reference to guide you in managing sales tax payments and filing them electronically:

• Manage sales tax payments in QuickBooks Online.
• Pay and file payroll taxes and forms in Online Payroll.

You can always reply in the comments below if you have additional questions about recording and managing sales taxes. We'd be glad to hear more from you. Have a good one!