With the new change as of Nov 1st where the gross amount including sales tax will be deposited into my PayPal account and then eBay will charge me a 'fee' to pull back the sales tax, I have a question of how to account for this in Quickbooks.
I have a single brick and mortar store in NYC.
I sell products direct to consumers but also through eBay. With this change, my 'Sales Tax Liability' reports are completely wrong now.
For example:
In November I sell $100,000 of product in my store with 8.875% sales tax. (Sales tax collected $8,875) - This I pay direct to the state
I also sell $1,000,0000 worth of product through eBay to buyers located in New York state. (Sales tax collected $88,750) - This is pulled back by PayPal as a 'fee' at the end of the month.
When I run my sales tax liability report in QuickBooks is shows I owe $8,875 + $88,750 for a total of $97,625. However, PayPal charges me an $88,750 fee to pull that sales tax back from my account and remit it to the state. However, in Quickbooks, it looks like I've collected this sales tax and then received an expense of PayPal fees of $88,750. How do I tell Quickbooks that this $88,750 fee should reduce my 'sales tax liability'?
