Run the Tax Liability report

The Tax Liability report calculates what you actually owe for a period and compares it against your Sales Tax Payable account in the General Ledger, so you can spot any differences before filing.

Open the report

1. Go to Tax Management > Reports.
2. Click the Tax Liability card.

Set the period

1. Choose a Start Date and an End Date.
2. Apply the dates to refresh the figures.

What the report shows

• Tax Collected – tax collected on invoices in the period.
• Tax Credits – tax reversed by voided invoices / credit memos.
• Net Liability – tax collected less credits.
• GL Balance – the current balance of your Sales Tax Payable account.
• Variance – the difference between the net liability and the GL balance, shown as an amount and a percentage.

A breakdown by state shows tax collected and invoice count for each state.

Tip: A large variance usually means tax entries and invoices are out of step. The Tax Reconciliation report can help you investigate further.