Sales Tax Liability

Welcome to the Community, @Coast2!

I see the importance of running one report with all the information you need to file your tax return easily. Let me share how to generate a report that contains your total sales, non-taxable sales, taxable sales, tax collected, and sales tax payable.

To print a report that contains those details, you'll need to run the Sales Tax Liability Report. Here's how:

1. Go to Reports.
2. Search for "Sales Tax Liability Report" in the search bar.
3. Select the correct date range depending on how often you file your tax.
4. Select the Tax Agency dropdown. Then, select All or just one tax agency.

From there, you can view your total sales in the Gross Total column. Additionally, under the Tax Amount column, you can see the total tax amounts you collected from your customers. 

Under the Non-taxable and Taxable Amount columns, you can find your non-taxable and taxable sales amounts. Also, your collected tax should be under the Tax Amount column.

Lastly, you can select any tax amount to open a transaction report. This way, you can see how much tax you charge for each sale. 

I'm leaving this article with more information on using the Sales Tax Liability Report in QuickBooks: Check how much sales tax you owe in QuickBooks Online.

For future reference, here's an article about filing your tax return and recording your payment: File your sales tax return and record sales tax payments in QuickBooks Online.

Please feel free to reach out if you have any follow-up concerns regarding the Sales Tax Liability Report. I'm just one post away to assist you.

I'm on the Sales Tax Liability Report, but I don't have a Tax Agency dropdown option.  Where do I find that?  It only shows the taxable amount and tax.  

Hi there, @Coast2. 

When we pull up the Sales Tax Liability Report, the Tax Agency dropdown list will display. Since the option is missing, we can perform some basic troubleshooting steps to identify if this is a browser-related issue. 

Your browser's cache saves files on your computer to enable the website to download faster on your next visit. However, it can also get outdated over time, leading to problems in accessing websites. To get started, we have to open your QuickBooks Online (QBO) account on an incognito window. Doing so will prevent the browser history from being saved. 

Please refer to the following keyboard shortcuts based on your browser type:

• Google Chrome: Ctrl + Shift + N
• Mozilla Firefox: Ctrl + Shift + P
• Microsoft Edge: Ctrl + Shift + P
• Safari: Command + Shift + N

If the private browsing session works, clear the browser's cache so the system can restart. This task is also possible in other supported, up-to-date browsers. Clearing the cache will reboot the system, allowing you to work with clean slate. 

Moreover, you read this article to learn about recording, adjusting, and deleting payments on the Tax center page: Manage sales tax payments in QuickBooks Online. 

I'm still all ears if you need further assistance running your sales tax reports. Just drop your reply below, and I'll circle back to help you. 

Consider moving to Avatax and rid yourself of this tiny nightmare. They are worth every penny and you do not have to worry about missing sales tax rate changes which could cost you a LOT in the event of an audit. 

You are completely missing the point here.  The California tax agency (CFTDA) is requiring the separation of sales made to exempt customers (resale) versus non-exempt.  Furthermore, for each, they require the separation of labor (services) and materials.  Your Sales Tax Liability Report (or any of the current sales tax related standard reports) do not have these figures.  Your report only has a total sum of taxable versus non-taxable sales regardless whether labor or materials.  And on top of that, you cannot drill down for the info because if you drill down into the Non-Taxable figure, it only shows the taxable and tax amount columns and cannot be customized to include the rest.  It is a joke.  When I clear cookies or move to different browser or use incognito mode in Chrome, sometimes the amounts change on the report drill down.  This is an insult for those of us who pay in excess of $400 per month for this software.  

AvaTax is just as bad - at least when it comes to CA sales tax.  Their customer service and their web based portal is as bad as QBO.  And if you are already doing your accounting on QBO, then you are just making your life even more complicated by using a third party sales tax vendor.  QBO calculates the sales tax correctly based on ship to address and does a fine job, where it completely fails is the reporting and filing process.  Intuit's CEO should be fired for having not solved this issue in the last 4 years since they divorced from Avalara/AvaTax.

Avatax is a good product in many ways. CA is a PIA state. I would never trust staff to prepare and pay sales tax in a small business. What are you paying $400/month for? I can see if I can get someone from Avalara to respond if you want? I do not work for them. 

I did everything you advised and there still is not a Tax Agency dropdown option.  Is there a report that provides the following information:

Total Sales

Non-Taxable Sales

Taxable Sales

Tax Collected

Sales Tax Payable

With QB Desktop the Sales Tax Liability Report provided this and I was able to complete my quarterly sales and use tax return in about 15 minutes.  This report not being available on QB online is terrible. 

Hi Coast2,

Thank you for returning and restating your objective of creating a report that displays the breakdown of amounts in your tax report. Let me help you on this.

Do you still have an old sales tax report from your QuickBooks Desktop that you can share with us? Just take a screenshot and hide any any sensitive details. You can share it with us on your next reply, so I can make a comparison. I have a sample that you may want to use.

Currently, the sales tax return in QBO is actually designed to show the breakdown that you pointed out. All you need to do is click the View Tax Return option on the Taxes page, and you'll get a report like in the second screenshot. Here's an article to guide you through creating a return: File your sales tax return and record sales tax payments in QuickBooks Online.

If there's anything that I can help you with your taxes, please don't hesitate to visit me back on this thread. I'll be happy to lend a helping hand.

Attached is the current report I'm getting when I view the Sales Tax Liability Report.  I need to be able to view the report in your first screenshot (that's how I was able to view it on QB Desktop).  I do not want to file the sales and use tax report online through QB.  I want to continue to do it myself through the California Sales and Use Tax website directly.  Is this possible?  How do I view the report in your first screenshot showing Total Sales, Non-Taxable Sales, Taxable Sales, Tax Rate, Tax Collected and Sales Tax Payable?

Thanks for reaching out and providing clarification, @Coast2. I'm here to assist you in finding the information you wish to view.

Yes, you can file sales tax directly on the website. Additionally, based on the screenshot provided, it seemed that your report wasn't customized. We can filter it to view the details.

1. Go to the Reports menu.
2. In the search bar, type Sales Tax Liability Report.
3. Click the Customize button.
   
4. Select the Change columns link.
   
5. Put a checkmark beside Tax Name, Gross Total, Non-Taxable, Taxable Amount, and Tax Amount.
6. Hit Run report.
   

Furthermore, you'll have to click each tax to see the rate.

I'm adding this article to learn more about how QuickBooks calculates sales tax: Learn how QuickBooks Online calculates sales tax.

When it's time to file your sales tax return and record your tax payment, you can check this guide for detailed steps and information.

Come back to this post if you need clarification about this. I'll be around to provide further assistance.

Thank you for this info.  We're getting closer, I was hoping this would work, but when I hit customize there is not an option to change the columns.  Only header/footer.  I've attached a picture of the options under customize.  Please advise.  Thank you.

Thanks for getting back here in the thread, @Coast2. We appreciate you for clarifying your concern about not having the option to change the columns in the Sales tax liability report. Rest assured, we'll help you resolve this. 

Usually, you can easily see the option to change the columns right after clicking the Customize tab. At times, issues may arise while working on your QuickBooks Online (QBO) account due to a filled browser cache. We suggest running QBO in a private or incognito browsing mode to help your computer run optimally and regain some storage space to continue working seamlessly. See these keyboard shortcuts to open a private window: 

• Google Chrome: Ctrl + Shift + N
• Mozilla Firefox: Ctrl + Shift + P
• Safari: Command + Option + P

For a detailed step-by-step process in clearing your cache, check out this article: Clear cache and cookies to fix issues when using QuickBooks Online.

After doing so, try to customize your Sales tax liability report again. For exporting your reports, lists, and other data from QuickBooks Online, kindly check the guide for additional assistance. 

Don't hesitate to let us know once it works. If you have further concerns about managing your reports in QBO, please reach us back. We'll be happy to assist you. Have a good day! 

If you look up in our email thread this was advised for me to do already, which I did and it did not work.  I tried it again per your advice and still no column to customize, only general and header/footer.  Any other suggestions?

Getting a clear and precise reports is crucial for any business. We want to get this resolved so you can get the accurate sales tax details for the state of California, Coast2.

I also reviewed the thread and can see that you've tried all recommended troubleshooting to customize the liability report. At this point, I suggest reaching out to our phone or chat support teams for direct assistance.

Having an agent look at this will help us determine why the option to change columns in the report isn't showing up. Here's how to reach out to them: 

1. Log in to your QBO account.
2. Go to the Help menu in the upper-right-hand corner to open the QB Assistant window.
3. Type in "talk to a human", then press Enter.
4. Select QuickBooks Online Support, then click Contact Us.
5. Provide a short description of your concern and click Continue.
6. Choose the option that you want to get in touch with our support team.
7. Select Callback if you want to save your spot in the queue. Choose Appointment if you want to have someone call you in the next available schedule. On the other hand, click Chat if you want to start a conversation with one of our chat support agents.

This article provides further information regarding their contact details: QuickBooks Online Support.

Whether it's a customized report, data entry inquiries, or anything else - our team is help and provide additional assistance whenever you need it. We want to make sure you have the guidance and knowledge to confidently manage your QBO account, Coast2. 

I too have this same issue but in Colorado. Their return requires this information as well. Attached is a picture of QB 2018 Desktop Sales Tax Liability report. I am flabbergasted that I can not get this simple report to file my sales tax returns. I do NOT want to automate this   I just need the report back. Not only do I need the non taxable sales I need that info for two jurisdictions and I can’t even drill into it any longer. 

please fix this and bring back the old format fro QB desktop 2018 so I can file without so much hassle. Considering I’ve had no choice but to pay quadruple what 2018 desktop cost!

oh and I can’t upload the picture I took but I am sure you can find the QB Desktop 2018 Sales Tax Liability report in your archives it’s not that old!

No columns here either 

Hi, Cindy.

Thanks for joining this thread. I'm here to help ensure this is taken care of for you, but I need to ask some clarifications.

To begin, may I know if you're using QuickBooks Desktop (QBDT) or QuickBooks Online (QBO)? Also, are you referring to having the report from QBDT show in QBO? Any additional information will help me provide the resolution for your concern.

Also, you have two options to upload a screenshot to your response. You can use the Insert Photos (camera) icon or the Drag and drop here or browse files to attach section.

I'm looking forward to hearing from you soon.

Cindy,  

I feel your pain. I personally do not like manually preparing sales tax returns because I have to stay on top of knowing when, how much and for how long when a rate change happens. Have you considered avatax? They are/can be economical for the service. As a consultant, I have experienced bad results for companies that DIY sales tax. I hope you can get the support you need.

I feel your pain.  I am in Florida, and each county can set a surtax, meaning we have different rates across the state.

The Sales Tax Liability Report is a disaster, worse since whatever update went in last month.  It does not provide a gross total (only by line), it does not provide the exempt sales, or a total taxable amount. 

I used to use a manually generate report to list the taxable and gross sales (I still had to subtract, but at least it was doable).  For some reason since last month, it now lists amounts as "taxable" even though there was no tax collected because there was no "shipping address" entered (we bill head office and do not need to enter a shipping address).  Previously, I could set select the tax rate I needed, but now I have to manually enter an entire address?  The reports are all wrong and all useless.

Attaching a copy of the report...please tell me what numbers are gross sales, non taxable or taxable for entry into my state form?  FYI, my sales report for November has a total of $92,399.63 (which isn't on your report at all).  No idea any more what to file, and really tired of all of these "improvements" that are just adding work

I recognize all the challenges you've encountered, dLearned. I'm here to ensure you get all the information and desired outcome. 

When running the sales tax liability report, please know that the gross total is displayed per line or tax name.

This report shows the breakdown of taxes under a specific agency. The amount 1,971.04 is the total taxes for the Florida Department agency, and the gross for each name is the sum of nontaxable, taxable, and tax amounts.

On the other hand, QuickBooks Online calculates total sales tax rate for each sale based on certain factors.:

• Customer's sales tax exempt status.
• Where you sell and where you ship your products.
• Sales tax category for your service or product.

If your item is nontaxable, untick the taxable box when adding it to your invoices.

Regarding the discrepancy between your sales report and the record in QuickBooks, it would be beneficial to review those transactions thoroughly. It's important to note that the system relies solely on the accuracy and completeness of the transactions entered into. 

I'll add articles to share some tips and information on how to customize and run reports:
 

• Run financial reports
• Reports included in your subscription

I assure you that I'm always here to back you up if you need further clarification and information regarding sales taxes and reports. Just tap the reply button below to enter your thoughts and comments. 

Dlearned, 

I am willing to support you. I am not an employee of Intuit. 

Thanks for your response but you did not answer the questions.  Sure the total for the Department of Revenue lists the total tax amount, but it does NOT list the Gross Total, the Non-Taxable Total or the Taxable amount total - all of which are mandatory data for filing a tax report.  In addition, none of those lines equal the actual Gross total for the month (the amount that appears on my P&L and Balance sheets).  This has been correct in previous months, it is only since you've forced a new horrendous invoice template on us that is now incorrect.  Clearly, the problem is with whatever changes were made (without any documentation I might add).

None of the items are "ticked taxable" yet they still show on the report as taxable but with zero tax calculated (I assume this is because like everything, tax may or may not be applicable and it doesn't know how to deal with that) - again, it did not do this in previous months, just since the new invoicing template (which added "automation" to the taxes (which can't be turned off, thanks so much, except invoice by invoice).

I have attempted to use the figures provided on these reports, and the state form has rejected because the numbers don't balance - and I can't tell where to get the right numbers since both this report and the sales reports are either incorrect or incomplete and do not match each other.

I swear, does Intuit understand that "automation" is supposed to create less work, not more?  If the reports are unreliable at this point in the year (i.e. less than 4 weeks away from year-end), how can we rely on anything produced for filing our income taxes?

I know a possible reason why your items are set as taxable,  dLearned. Allow me to share some explanation behind it.

I can think of two possible reasons why your reports show that the product was taxable. 

First, the nontaxable items are set as taxable in the Sales tax category. I recommend ensuring each product is set to its proper sales tax since it'll reflect on your reports. 

You can change the sales tax within the Products and Services window. Kindly follow these steps: 

1. Go to the Sales menu located at the left navigation panel and then click the Products & Services tab. 
2. Select the items that were supposed to be nontaxable or vice versa.
3. Scroll down and look for Sales tax.
4. Click the Edit sales tax option. 
5. You can choose either taxable or nontaxable, and then click Done.
   
   

The other possible reason is that while you create your invoice or other sales form, the tax column that aligns with your product has a checkmark. 

If you want your items to be shown as nontaxable on your reports, you'll have to edit your sales form and untick them in the Tax column. You can also use these steps if you want to edit your historical transactions.

Here's how: 

1. Go to the Sales menu and then click the Invoices tab. 
2. Choose a transaction and then click the Edit option under the Action column.
3. Under the Tax column, remove the checkmark by clicking it.
4. Press Save and close. 

After doing this, you can now pull up your Sales tax liability report. Check if anything changes in the tax column of your report. 

Let me share a material incase you want to learn more about the calculation of sales tax in QuickBooks: Learn how QuickBooks Online calculates sales tax. 
 

You can also Customize reports in QuickBooks Online so that you'll be able to customize and focus on the details that matters.

If you have further concerns regarding on sales tax liability report to anything related to QuickBooks, feel free to comment below. We're always here to help you.