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BellaP
January 30, 2021
Question

How to record sales tax colelcted by ebay

  • January 30, 2021
  • 1 reply
  • 0 views

Hi all, I've just downloaded my Paypal transactions and for some of my ebay sales, ebay collects a tax, which is recorded as 'Partner fee' in the list of paypal transactions. I'm just wondering how I should record this in Quickbooks because this is not something  I've encountered before.

 

To note, the transactions are in GBP, but the customer is, for example, in Australia. The tax is added on to the sale and the customer pays the tax. Can I just ignore this?

 

Thanks in advance for any advice.

1 reply

Pabz_L
Pabz_L
January 30, 2021

I'd be glad to assist you with information about the sales tax collected by eBay, @BellaP.

 

Since eBay collects the sales tax, you don't have to record. Instead, you can mark the sales as non-taxable in QuickBooks Desktop.

 

Here’s how:

 

  1. Log in to your QuickBooks Desktop and click the Lists menu. Then, choose Item List.
  2. On the Item List window, click on Item then New (or Edit Item).
  3. From the tax code drop-down, go to Non-Taxable Sales (or Non-Taxable Labor).

 

I also recommend getting in touch with your accountant to make sure you’ll get the support needed.

 

I’ve added an article with additional information about sales tax in QuickBooks Desktop: Sales Tax in QuickBooks Desktop.

 

Let me know if you have any follow-ups or other questions. I'm always here to help. Wishing you a good one.

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