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Sales tax liability report

How do I create this report?

To do this task

  1. Go to the Reports menu and click Vendors & Payables.

  2. Click Sales Tax Liability.

What this report tells you

This report summarizes your sales tax liability (the sales tax you've collected and currently owe to your tax agencies). The report shows your total taxable sales, total non-taxable sales, and the amount of sales tax you owe each tax agency. If you collect sales tax for more than one tax district (city, county, state), each district has its own line in the report. The last column shows how much your business currently owes each tax district.

If you send out billing statements for non-taxable services, the sales tax liability report shows your statement charges as non-taxable sales. The report includes only those statement charges you entered while sales tax was turned on. The report cannot show statement charges you entered while sales tax was turned off.

What does "multiple taxes" mean?

If you see this line item on a sales tax report, it means that you are using a sales tax group item (i.e., you need to charge more than one sales tax rate per sale and you've grouped them so that the customer sees only one sales tax amount). If you use a sales tax group item, some reports show the sale amount once for each sales tax rate so you can clearly see each amount. The line "Multiple taxes ..." is used to give an accurate total by canceling out duplicated sales figures.
Example

In this example, Rock Castle Construction has a sales tax group item that is composed of three separate sales tax items with flat rates of: City at .5%, County at 1%, and State at 7%. All of the sales tax collected is payable to the tax agency named CA Tax. The sales tax liability report shows the amounts owed for each sales tax rate and the total tax owed so that you can complete your sales tax returns using the correct amounts. "Multiple taxes ..." zeros out the duplicate totals.

sales tax liability report with sales tax group

Although QuickBooks normally creates the report on an accrual basis, you can change it to cash basis.

If the report you're working with is a summary report (a report that summarizes transactions instead of listing them), you can change its basis from cash to accrual or vice versa.

To do this task

  1. In the report window, click Customize Report.

  2. Select either Cash or Accrual as the report basis.

  3. Click OK.

See also

See also

KB ID# H_RPT_AP_SALESTAX
11/22/2014 10:57:03 PM
PPRDQSSWS401 9102 Pro 2013 002663