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Avalara Help Center

Why is my consumer use tax amount not what I expected on the liability worksheet?

Overview

When viewing the liability worksheet, the consumer use tax listed is not what you expected based off of your purchase or inventory transfer transactions.

Environment

Returns

Resolution

Consumer use tax is built to a return based on whether the return is able to file it and how the purchase invoice or inventory transfer document has been created. If you do not see consumer use tax building to your return or the amount is different from what you expected, please review the following:

  • View the tax types listed on your filing calendar and confirm the form selected to be filed includes consumer use tax.
  • If you are reviewing a prior period or you have already approved the current period, check the status date of the transactions and ensure they are locked.
    • Transactions posted to AvaTax after the worksheet has been approved or approved on behalf will not be included on the return.
    • These amounts will show on the summary line of the state on the liability worksheet.
  • If you have used an override on the transaction allowing you to tell AvaTax the amount of tax, check the type of override used.
    • TaxAmount acts as if the consumer use tax was paid and will not populate on the liability worksheet.
      • When importing, this would be a process code of 1 for new transactions or 2 to edit an already created transaction.
      • AvaTax will calculate the tax that should have been paid, subtract the amount of tax you provided and remit the difference, also known as a variance.
      • Example: You have provided a tax amount of $5.00, but AvaTax calculated the total tax to be $7.00. AvaTax will remit $2.00, as that has yet to be paid.
        • The variance amount will populate on the liability worksheet to be filed.
      • You can view any variances by running the Standard Consumer Use Tax Reports
        • The Consumer Use Tax Document Summary report will show you the tax amount you provide, what AvaTax calculated, and the variance between the two.
        • The Consumer Use Tax Document Line Detail export report will show you any variances in column BM.
    • AccruedTaxAmount acts as a total lump sum of consumer use needing to be paid and will populate on the liability worksheet to be filed.
      • When importing, this would be a process code of 5 for new transactions or 6 to edit an already created transaction.
      • With this override, you do not provide the sales amount.
        • This will show total sales and taxable sales for consumer use as 0.00 or less than you expected.
        • When filing the return, we will back-calculate the sales for the tax provided.  
    • If there is no override and AvaTax did the calculation, this amount will populate on the liability worksheet to be filed.
      • When importing, this would be a process code of 3 for new transactions or 4 to edit an already created transaction.
  • Check to make sure if any carry-over credits were applied or excluded.
  • Check the return filing frequency.
    • If it is the middle of the cycle, you will see tax liability but nothing due.
  • If you have child companies using a parent company for filing, please review the transactions under each applicable company.
    • All transactions for an applicable filing will populate under your Return, but they will be listed under their individual company.
  • If the worksheet is still unlocked, attempt to rebuild the state on the liability worksheet page in your admin console.
    • Rebuilding will push through any changes that were made recently that haven't updated to your liability worksheet yet.
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