If you post an intercompany invoice to which tax has been applied, the tax liability will remain with the Accounts Receivable company.

For example, if Co #1 posts an invoice of $1050 (includes $50 tax) to a contract in JC Co #2, Co #1 will receive a debit of $1050 to their Receivables account, a credit of $50 to their Sales Tax Payable account, and a credit of $1000 to their Intercompany Payables account. Co #2 will receive a debit of $1000 to their Intercompany Receivables account and a credit of $1000 to their Contract Revenue account.