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808sweetshack
October 21, 2020
Question

Sales Tax

  • October 21, 2020
  • 1 reply
  • 0 views

My quarterly sales amount is QB is incorrect.

I do not use QB to invoice as I use Shopify and my customers pay in person.

 

In this case what I owe is LESS per my state  than what QB says is correct.

How can I amend this? Journal entry?

I only use QB as a method to track my sales, expenses, etc. so this is really a bookkeeping issue. 

My customers are charged correctly but QB is not calculating it correctly. WE found a few reasons today and hopefully can correct going forward but I just need to amend my book for the tax 

I did pay.  The agent was unable to help me.

 

1 reply

J
JamesM
October 21, 2020

Hi there,

 

Making sure your sales tax is correct saves you from the hustle and bustle that's involved with your year-end calculations. QuickBooks is a robust program which offers a variety of great features such as the automated tax module. It's vital your tax amounts are showing up correctly and I'd be glad to help. 

 

Based on what you've described, it's essential to make sure your tax rates and tax agencies are set up correctly on your account. You an check your tax agency settings by clicking Taxes from the left menu > Manage sales tax >  Tax agencies. Before entering any journal entries, I highly recommend contacting your accountant for guidance in order to prevent discrepancies. If you're not in contact with one I suggest searching for one on our site. I'll leave this question open in the community so other members can chime in and share their advice. Otherwise, check out this helpful article which shows you how to: Create a journal entry in QuickBooks Online.

 

Feel free to ask other questions, I'm here to help steer you in the right direction. 

M
MBowland
January 2, 2024

Quick Books does not do tax calculations for shopify or paypal payments correctly.  I do not bill out of QBO, I only use it for bookkeeping.  The issue is the shopify payment is less transactions fees, and QBO is doing a tax calculation on that deposit and that is incorrect.  As an example my customer pays 16.28  - 15.50 for the product and 0.78 for the GST.  Shopify deposits 15.51 into my account (minus 0.77 for transaction fees).  QBO then calculates the GST off of the deposit of 15.51, therefore showing a total of 0.74 being collected as GST.  How do you fix this?  exempt the shopify payments from TAX and do a bunch of journal entries to account for fees & tax?

A
Amanda-B
January 3, 2024

Hey there, MBowland.

 

Thanks for reaching out to us here. I'd be happy to point you in the right direction for the best assistance.

 

Based on what you've described, I recommend reaching out to the support team outside of the Community. They'll be able to verify your account details, as well as do a screenshare with you to see what may be causing this to happen. You can reach them by following one of these methods:

 

Schedule a Callback or start a Chat: select (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > then hit Let's Talk > choose Get a callback

 

If you have any other questions, feel free to reach back out here.

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