Tax Liability Differs From Transaction Report

[jjsararas]

When I run a Transaction Applied report for the quarter, and then a Transaction Received report, I get the same amounts (probably a coincidence as the dates are slightly different, I know), but so what I'm confused about is- the Tax Liability report for the same dates produces a different total amount (less 4.9%) than both the other reports' tax amounts. 

I can't find anything in doc about how tax liability is calculated, can someone elucidate?

 

Many thanks

[Tyson]

Thanks Tyson, just to clarify- when you refer to when 'transaction were created', does that mean when the invoice was created?

 

No, I mean when the transaction was created, i.e., when a record was created in Blesta for receipt of payment by the customer. In most cases, the invoice associated with the payment would have been created sometime earlier.

 

 

So, if something was invoiced before the date range, but paid/closed/applied within the date range, then it wouldn't show up in tax liability for that period?

 

It would appear in the tax liability report. The date you filter by for the tax liability report refers to the date the invoice was closed, meaning that 100% of the invoice total must be paid within that date range. The transaction reports are a bit different, as the filter dates refer to the date the payment was received. The date the payment was received is not necessarily the same date that invoices are closed. It's possible to make a payment a year ago, but only have that amount applied to an invoice today. In this case, the invoice would appear in the tax liability report for today while the transaction reports would have included it a year ago.

[Tyson]

The tax liability report will only include data for taxable invoice line items belonging to closed invoices, where matching tax rules still exist and the invoice was closed between the given dates.

 

The transaction reports will include all transactions received/applied, where the transaction was created between the given dates.

 

So, if you have paid invoices with line items that are not taxable, or partially-paid invoices, or you have deleted tax rules, or transactions were created before your start date, but applied to invoices after the start date, then the tax liability report total would appear less than transactions'.

[jjsararas]

 

So, if you have ... transactions were created before your start date, but applied to invoices after the start date, then the tax liability report total would appear less than transactions'.

 

Thanks Tyson, just to clarify- when you refer to when 'transaction were created', does that mean when the invoice was created? So, if something was invoiced before the date range, but paid/closed/applied within the date range, then it wouldn't show up in tax liability for that period? Sorry I'm confused because I don't have any of the other scenarios you describe. It's all pretty straightforward. Plus, the discrepancy is an odd number- it doesn't reflect any multiple of my simple packages, with or without tax. 

[jjsararas]

Ok thanks, I don't think I can use the tax liability report then. I appreciate the clarification tho.

[johnbuchmiller]

I understand your problem regarding tax liability.Hope you solve your problem if not then contact any good Tax Lawyer.They have all information about taxation problems.