Creating a sales tax liability report

The sales tax liability report provides complete information about the sales tax your company owes for a particular period.

QuickBooks displays your sales tax liability in reports on an accrual basis unless you changed the setting (see below).

To display the report:

  1. Choose Reports > Vendors & Payables > Sales Tax Liability.
  2. Check the dates shown in the From and To fields. If you want the report to cover a different period of time, do one of the following:

To change the accounting basis of the report:

  1. Choose QuickBooks > Preferences and click Sales Tax.
  2. In Sales Tax Accrues, select the basis you want.

If you use a group tax...

QuickBooks calculates each tax in the group individually and then adds the individual taxes together to get the total tax. Because QuickBooks rounds the individual tax amounts to the nearest cent, the total for tax group may be slightly different than the total you would get if you combined the rates of the individual taxes and applied the single rate to the sale. Don't worry about this discrepancy; QuickBooks calculates and reports each individual tax amount correctly.