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DS127
Level 3

taxable sales - which number to use

Can someone help me get my sales tax reports correct? Client has both tax exempt sales (based on entity) and nontaxable sales (based on product).  See the attached. 

When I go to Taxes/Sales Tax/View Return the Gross sales, taxable sales, and tax amount is different from the Taxable Sales Detail report.  The taxes should be $151.20 paid on $2520.00 of taxable sales. 

 

When I filed the sales tax with the state, I used  Gross sales and taxable sales from the Taxes/Sales Tax/ View Return report, (bc that's how the state tax site calculated, understandably.)  So I paid $168.65 which is the rate on the taxable sales.

What am I doing wrong?  Thanks for your help. The tax rate is 6%, BTW.

10 Comments 10
DebSheenD
QuickBooks Team

taxable sales - which number to use

Hi, DS127.

Thank you for posting your concern here in the Community.
I will make sure that your sales report will be accurate.

You can check each transaction that composes the taxable amount. It is possible that there are items that were included in the tax exemption.

The sales tax report will depend on the data that you enter in QuickBooks.
By showing the breakdown of those transactions you can find the cause of incorrect reports.

Here's how to view the sales tax liability report:

1. Open your QuickBooks Online (QBO) account, then go to the Reports tab at the left pane.
l1.png
2. Search for Sales Tax Liability Report, then click it open.

3. Set the dates, then switch the Accounting method to Cash, then Accrual.
l2.png

4. Tap Run report to refresh the page.

Once done, compare the figures to the Sales Tax section.
From there you can edit those transactions that need to correct.

You can also check these article that will help you in managing sales tax:

how QuickBooks Online calculates sales tax.
Sales tax in QuickBooks Online 

If you have questions or clarifications, please post in the Community. We are always here to help.                                                                                                              

DS127
Level 3

taxable sales - which number to use

Thanks for the info, I knew all of that, the problem comes from your last two lines:

Once done, compare the figures to the Sales Tax section.
From there you can edit those transactions that need to correct.

 

The problem is that the figures in the Sales Tax section are different than the Sales Tax liability report, and I can't edit them. See the file attached for another, easier example.

 

--The first page: why does no gross amount of sales show on the client's ST Liab report? The second page show ours where it does.  BTW Everything is done cash basis.

--The third page shows the screen that comes up when you pay the sales tax (client's QBO). Why is gross sales different on this page vs the second page?

-- On the third page, where we go to pay the ST, how to fix that number ($-42.97) in Nontaxable Sales? We find that this amount only appears once in the client's QBO, we see a bill (that has been paid) where it was bought from a vendor. Client tells me that it has not been resold yet as part of what they provide to their customer (does this have anything to do with it?). 

I can't click on the -42.97 and find where this comes from, I did a search in the transactions and this is all I found.  

 

At the heart of all of this is why the report generated at Tax, Sales Tax shows different gross sales than the Sales Tax liability report.  Which numbers do I use, and how to fix if they should be the same?  thank you! BTW this type of thing is going on in several clients.

Charies_M
Moderator

taxable sales - which number to use

I appreciate the additional details you've provided, DS127.

 

When the Sales Tax section and Sales Tax Liability Report shows a difference in the amounts, they may not have the same date ranges and/or report basis. Make sure to review the following to resolve the differences.

 

To give you additional information on how sales tax works in QBO, check out the following articles:

In case you'll need to check how much sales tax you owe, we can run the Sales Tax Liability report to help make sure that everything is accurate before you file your return to your tax agency.

 

Let me know if there's anything else that I can help with managing sales tax. I'm always here to assist. Take care and have a great rest of the day!

DS127
Level 3

taxable sales - which number to use

1. Sorry to be kind of thick-headed about this. The sales tax liability report shows cash basis, Mar 1 - Mar 31. It shows Gross Amount of $15,748.26 

2. When I run the Sales Tax report (from Taxes, Taxes Tax, View Return), the Gross Sales is $15,557.57.  I don't see anywhere on this report to verify it's cash basis. 

3. When I go to gear icon, Accounts and Settings, Advanced, it shows under Accounting method -- Cash.

 

So why isn't the tax report gross sales matching the ST liab report gross sales?  How can I figure out what's going on when the Sales Tax report (#2) doesn't let me click on the number to see where it is getting the amount?  

I've read all the articles but obviously I am missing something.

Thanks much.

DS127
Level 3

taxable sales - which number to use

1. Sorry to be kind of thick-headed about this. The sales tax liability report shows cash basis, Mar 1 - Mar 31. It shows Gross Amount of $15,748.26 

2. When I run the Sales Tax report (from Taxes, Taxes Tax, View Return), the Gross Sales is $15,557.57.  I don't see anywhere on this report to verify it's cash basis. 

3. When I go to gear icon, Accounts and Settings, Advanced, it shows under Accounting method -- Cash.

 

So why isn't the tax report gross sales matching the ST liab report gross sales?  How can I figure out what's going on when the Sales Tax report (#2) doesn't let me click on the number to see where it is getting the amount?  

ZackE
QuickBooks Team

taxable sales - which number to use

Thanks for following up with the Community, DS127.
 

After clicking View Return, you can select View tax liability report to click on column data and verify each record's history.


If your gross sales amount isn't matching on reports, I'd recommend working with an accounting professional to determine what's causing the discrepancy. In the event you're in need of one, there's an awesome tool on our website called Find an Accountant. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.
 
Here's how it works:

  1. Visit our Find an Accountant webpage.
  2. In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.
  3. Hit Search.
  4. Browse through the results and find one that works best for your business. You can click each ProAdvisor's profile to learn more information about their services.


Once you've found an accounting professional, they can be contacted through their Send a message form:

  1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
  2. Enter your info in the Your nameYour email, and Your phone number (optional) fields.
  3. Select Send message.


You'll additionally be able to find many detailed resources about using QuickBooks in our help article archives.

 

I'll be here to help if there's any questions. Enjoy the rest of your day!

DS127
Level 3

taxable sales - which number to use

I was able to verify (Taxable Sales Summary report) that I'm using cash basis and same reporting period on this and the Sales Tax Liability report.  I still don't understand why the gross sales differ on the two reports.

 

BTW, we ARE the tax accountants. I'm trying to figure out how to explain to the client why she should not use the Sales Tax Report (Taxable Sales Summary) but rather the Sales Tax Liability report to get the gross sales number for the sales tax return. Ideas, anyone?

 

Thanks.

DS127
Level 3

taxable sales - which number to use

I just figured this out, for anyone who is interested!

On the Sales Tax report,  the number in "Gross Sales" is the gross TAXABLE sales.  On the ST Liability report, the  Gross Amount is the true gross sales (includes non-taxable sales).  

 

For the states we file in, we need to show the latter number.  So, how to get Intuit to change the header to be accurate and say Gross Taxable Sales and "please use the ST Liab report to get the gross sales?"

RCV
QuickBooks Team
QuickBooks Team

taxable sales - which number to use

Providing the best experience with the product is what we aim for, DS127.

 

The option to change the header for the Sales Tax Liability report is unavailable in QuickBooks Online (QBO). We recommend submitting product suggestions to our engineers about this one by following these steps:

  1. Click the Gear icon at the top. 
  2. Choose Feedback.
  3. Enter your comments or product suggestions.
  4. Then select Next to submit feedback.

 

Your valuable feedback goes to our Product Development team to help improve your experience in QBO. You can track feature requests through the QuickBooks Online Feature Requests website.

 

Also, you'll want to check for a third-party application that can help change the header of the report. Just check out the apps that are compatible with QuickBooks at this link: https://quickbooks.intuit.com/app/apps/home/. We can also do it in QBO by following the steps below:

  1. Go to Apps on the left side menu.
  2. Search for the app in the Find apps to streamline your work field. 
  3. Look for the app that supports the Batch Invoicing feature.

 

Any questions about integrating the app into your Online account are best handled by the third-party app provider. To keep updated with any upcoming QuickBooks updates and enhancements, feel free to visit these blogs:

 

I'm just one post away if you need a hand with customizing reports or any QBO related. I'll be here to ensure your success. You have a good one. 

cswenson
Level 1

taxable sales - which number to use

Thank you for the clarification.  I was really confused on this, also.  

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