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JanMathew
December 15, 2021
Question

How do I record the tax I paid on shipping? pls read on as a bit tricky

  • December 15, 2021
  • 1 reply
  • 0 views

I use Chitchats for my shipping and their system has a "running balance" on my account where I use my credit card. Now that I am using QB for the first time, I am entering my credit card transactions in and I can't figure out how to enter Chitchats properly. Since I am in Ontario, taxes I pay on shipments changes depending on where to shipment goes to (which is taken care of by the running balance within my Chitchats account). Now the charges on my credit card statements are normally "top up credits" for Chitchats, like $20, $30 etc. When I try to enter them into QB, it prompts for the tax codes which is where I have the issue with as not all transactions have the same taxes and shipments to US do not have taxes either. I tried to "split" the transactions but the tax I paid doesn't show or add to the "sales tax center" on the left side menu that shows the tax paid on purchases.

 

Screenshot here shows my Chitchat statements where the Yellow is the credit card transaction and then the Blue is the one shipment with the tax charge. Please and thank you for your time.

 

 

 

1 reply

T
Trish_T
December 16, 2021

Hi JanMathew,

 

Welcome to Community!  QuickBooks Online is a versatile program with enhanced features allowing you to perform your bookkeeping tasks effortlessly.  Ensuring the applicable taxes are applied to your transactions is essential.  I'd be happy to assist!

 

QuickBooks Online automatically calculates the tax on invoices and receipts for accurate filings. Here's how to set up sales tax codes:

 

1. Open Taxes from the left menu and select Sales Tax

2. Click on Manage Sales Tax

3. Choose Add tax

4. Select ADD under What type of tax do you want to add?

5. Follow the prompts to complete the set up

6. Hit Add when complete

You're all set!  When entering your transactions, you'll see the options when you use the dropdown arrow in the sales tax column.

 

For your reference, here's a couple of helpful articles to have on hand:

How to set up a new tax code

Add a sales tax category to products and services

 

If you require additional assistance with existing transactions, I recommend reaching out to your accountant.  If you don't have one, we can help you locate a ProAdvisor in your local area.  

 

Please feel free to reach back out if you have any other questions.  We're happy to help!

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