QuickBooks and Sales Tax

In QuickBooks, there are multiple levels of control on taxable vs non taxable transactions. We list the settings in the order of "precedence" -> settings listed earlier will completely override later ones:

  • Customer taxable or not - if a customer is not taxable, no tax will show up
  • Sales tax item used on the receipt - If this rate is 0, tax will be 0
  • Item taxable or not - controls if the item price will be included in the taxable amounts

If you use Teapplix QuickBooks Integration, we control tax by flipping the customer taxable status on the Sales Receipt or Sales Order.

Teapplix uses QuickBooks to calculate the amount of tax. To make sure your sales receipt total matches that of your actual order, make sure you select the right Sales Tax Item in Teapplix Integration Setup.

This selected tax item must have a rate that matches your marketplace and shopping cart tax rate. If you have 2 separate tax items, one represent state tax, one represent local tax, you need to create a third item, of type "Tax Item Group", that combine both tax rates to get the proper total tax.

For each exported order, Teapplix will either set the customer taxable status to non, if no tax is charged, or tax, if sales tax are included in the order.

What you need to insure for sales tax to work correctly is that your items have the correct "taxable" status. Most physical goods sold on eBay & Amazon should be taxable.

It is also important that you review with your accountant if "Shipping & Handling" is taxable.

Note that the discount used to represent PayPal, Amazon and eBay fees must be "non-taxable". These are taken out after tax calculation is made.

For Amazon orders, Teapplix may not record the proper taxable status if Amazon does not charge sales tax for you.

For Buy.com, Teapplix do not import the tax amount in the sales receipt. So all taxes will be recorded as non-taxable out of state. This is due to Buy.com handling the tax collection and filing for you.

States with multiple tax rates
If you are in a state that has multiple tax rates, Teapplix can only apply one tax rate to your orders. You may need to edit the exported orders and change the actual tax item that applies.

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