Why does my Xero export not match what I see in TaxJar?
When we create a new bill/invoice in Xero, we use the Actual Sales Tax Collected amount for each state.
If the liability amount that was exported to Xero does not match the amount that you see in your Actual Sales Tax Collected tab of your Sales Tax Report, this could be because the export occurred before the filing period was marked as closed.
- When you file a return manually, you can record your payment and mark the filing period as closed in TaxJar. (If you are enrolled in our AutoFile service, the period will close automatically when we file your return.)
- Sometimes you will have orders that have not been imported prior to filing a return, and if the filing period is not marked as closed, these orders will still be reported in the filing period, updating the amounts you see in your Sales Tax Report.
- If you do mark the filing period as closed, then these transactions will be placed automatically in the next filing period using the date the transaction was imported into TaxJar. This way these transactions can be properly filed in the next filing period.
Another thing to keep in mind here is that the Xero export does not take into account the Nexus Established date if entered in your State Nexus Settings.
- We have more information on how the Nexus Established date affects your Sales Tax Reports here.
What if my Xero export doesn't match the amount filed to the state?
When filing manually, you will use the Actual Sales Tax Collected Report to complete your sales tax returns if you are certain that you were collecting accurately during the entire filing period, and this is the amount used in your Xero export.
- But, if for some reason you weren’t collecting sales tax for the entire period and everything you sell is taxable, the amount the state tells you to pay will likely be closer to the amount you see in the Expected Sales Tax Due Report.
- We have more information on the difference between the Actual and Expected Reports here.
If you're enrolled in AutoFile, we use the Expected Sales Tax Due Report to file your sales tax returns.
- We have more information on the Expected Sales Tax Due Report here.
If the liability amount exported to Xero does not match the amount that was filed to the state, you can edit this amount manually within Xero.