![]() ![]() The tax for all other transactions to those states was handled correctly, we just had these 4 random ones that are off. Just to give everyone a heads up, while reconciling the PayPal report for November, we found 4 transactions that show the marketplace facilitator tax included in the payment to us, but do not show a record of the tax being deducted back out and sent to eBay. Thank you for your we create a journal entry for every sale where eBay collects and remits the tax? One monthly journal entry for the collected tax? How do you reconcile your PayPal account at the end of the month with all of the Partner Fees? We will be updating our reports to describe tax transactions appropriately. ![]() "Currently sales tax collected by us on your eBay sales appear as Partner Fee. It sounds like PayPal is aware of the concern over the term "Partner Fee" and is working to improve their reporting. Beyond that, you're probably going to have to consult an accountant or tax professional to get specific answers to your being a devil's advocate here, but who do you send the 1099 to when your "partner" has received more than $600 in a year?ĭo we create a journal entry for every sale where eBay collects and remits the tax? One monthly journal entry for the collected tax? How do you reconcile your PayPal account at the end of the month with all of the Partner - I just happened to notice this note when I logged in to PayPal today to download our Activity Report for last month to get the sales tax numbers. Members here can advise where/how within eBay and PayPal you can access the relevant data and some possible ways to get that data into Quickbooks to keep track of it. That's why I was very careful to be generic in my advice. I wish it was an easy answer, but different business situations may have different needs, requirements, concerns and risk assessment and/or aversion. Partner Fee sounds like a business partner that should be reporting income.ĭo we create a journal entry for every sale where eBay collects and remits the tax? One monthly journal entry for the collected tax? How do you reconcile your PayPal account at the end of the month with all of the Partner Fees? Having recently seen someone go through an audit, our friends at the IRS want to see EVERY receipt for everything paid. I'm not a Quickbooks expert, so someone else may have better advice for you, but maybe you could create an "other income" account to assign the tax amount to and then an "other expense" account to record those amounts going back to eBay? I believe that would allow you to be able to track and pull reports for just those being a devil's advocate here, but who do you send the 1099 to when your "partner" has received more than $600 in a year? If so, you just need to make sure it is separating the tax amounts out properly and then that you show that same amount going back out to eBay. If you need or want to track it in Quickbooks, the first thing to look at is how do the sales get entered in to your Quickbooks? If you have an app or program that automatically imports sales directly from PayPal, it may already be including the tax amount in those sales when they are imported. It is my understanding that those tax amounts will now be included in the gross sales number on the 1099K form that PayPal will be sending to the IRS, so you definitely do need to keep track of how much money comes in and then goes back out to eBay for the sales tax.ĭepending on your situation, you may be able to just pull reports from PayPal, total up what they are calling the "Partner Fee" (that is the tax amount sent to eBay), and that will give you the number to use as a deduction on your taxes. Tax transactions that don't really happenĮasy to record actual tax collection that has to be paid to our home states but how to handle if eBay collects and pays for you.ĭo we record the extra $$ on sales price as revenue then expense the tax movement or just ignore and do not bother recording in the first place ? seeing as eBay collected and paid anyway ![]()
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