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How to record a sale when eBay collect and remit sales tax OBO the seller

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(@markn75)
Joined: 4 days ago
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I'm an online retailer. I have a Shopify online store with a bunch of sales channels... one of those sales channels is eBay... Under the Marketplace facilitator law... eBay (and other online marketplaces) now have to collect and remit sales tax on behalf of the seller in all registered states across the USA. So even if I, as a seller have no obligation to collect and remit sales tax in a particular state, eBay does and they do. So when I sell to someone from my eBay sales channel... That sale includes sales tax collected and remitted by eBay on my behalf...

Here's my challenge... That sale shows in my Shopify Admin as a taxable sale because Sales Tax WAS collected. All of my sales automatically create a receipt in QuickBooks Online because I use an App to automate the process. BUT... The sales tax shows on my Receipt for that customer...

Neither eBay, The 3rd part app that integrates eBay with Shopify, the 3rd party app that integrates Shopify with QuickBooks Online, Quickbooks themselves, or PayPal can change how the Sales Tax element flows through the transaction. So if it's going to show up in QuickBooks Online either way I go about it... How do I correctly record the transaction?

 

The sales tax part of that transaction is not a business expense to my business... It is not an income because I'm not collecting or remitting that Sales Tax... I can't record it without assigning an account to it which would show it on my P&L and I'd like to make sure that if I ever get audited, I can clearly show what really happened to that money... Any ideas on how to record the transaction... I'm completely stumped... Thanks in advance. Mark N.


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