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Can sales tax liability be reported at time of payment not time of invoice?

Full Question: Can sales tax liability be reported at time of payment not time of invoice?

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Answer:

Diane Yetter photoThe general response is that most states (I'm really only aware of IL that doesn't follow this rule on a general basis) is that if you are on accrual basis for your financial reporting, you are required to report your sales tax liability and remit the tax charged on an accrual basis. If you are on cash basis for financial reporting, some states will allow you to report on cash basis. This is a state specific situation and you will need to review it on a state specific basis. If you are interested in assistance with this, please let us know and we can discuss our services.

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