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Geoffd1111
January 17, 2023
Question

Etsy import US State taxes not handled properly prior to Feb 2022

  • January 17, 2023
  • 1 reply
  • 0 views

It has come to my attention that when import transactions from Etsy QBSE doesn't correctly handle UK Sales to US states that charge sales taxes. This appears to have been fixed on transations from Feb 2022 onwards but before that the sales tax is not deducted overstating my income for tax purposes.

 

Eg I sell an item for say £60 and the state tax comes to say £5.  Gross income is shown as £65 but I never see the additional £5 as Etsy deduct it from my income and presumably pays it to the relevant state. After Feb 2022 there is a transaction that shows the state tax as an expense that comes off the gross.   Prior to that, my tax calculation is including hundreds of pounds of deducted sales tax which is being treated as though it was my personal income. 

 

How do I fix this in last all of the previous years I have been trusting QBSE to calculate my tax bill. It amounts to  thousands over several years

1 reply

A
AbegailS_
January 18, 2023

Hi there, @Geoffd1111. 

 

When importing data to QuickBooks Online, the program depends on the information shared by your third-party application. This means QuickBooks depends on what details Etsy shares.

 

If your payment processing service doesn't add sales tax to transactions, you'll need to do it manually.

 

Furthermore, I got you this article that you can read for additional reference. This can guide you to understand more on how to track sales manually: Manually track sales tax in QuickBooks Self-Employed


Just in case, I'll add this article for future reference: How sales tax works in QuickBooks Self-Employed.

 

You can consider checking out our QuickBooks Online (QBO) or TurboTax. These versions have the option to calculate sales tax for you.

 

Reach out to me in the comment section below if you have any other concerns or questions. I'm always here to answer them. Take care and have a good one!

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