I have noticed that my Etsy income on Quick Books includes the sales tax that Etsy collects. Is there a way to separate that other than going through each transaction?

Thank you for contacting us, jennaisbell.

QuickBooks Self-Employed (QBSE) lets you integrate with Etsy to keep your business records accurate.

The data that Esty sends for income includes the money they collect for sales tax. However, it won't show up as a separate transaction in QBSE. 

Use the sales tax totals on Etsy to calculate your sales tax payments. After you make sales tax payments and your bank processes them, come back to QuickBooks. Then, categorize the transaction from your bank as Business. You can also refer to this article for more details: Track sales tax in QuickBooks Self-Employed.

Here's how to categorize your transactions:

1. Go to the Transactions tab from the main menu in the upper right.
2. Swipe left for Business or right for Personal on each transaction.
3. If the transaction is a mix of both types, tap the transaction and select Split.

The Categorize and edit transactions article will discuss further in reviewing your entries in QuickBooks.

Keep me posted if there's anything else I can help you, and I'm always right here to help you out.

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@MaryLandT wrote:

 

Use the sales tax totals on Etsy to calculate your sales tax payments. After you make sales tax payments and your bank processes them, come back QuickBooks. Then, categorize the transaction from your bank as Business.

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This is sales tax for states that collect sales tax on online sales. 

I do not collect that money nor does my bank process it. I do not pay the sales tax, Etsy collects and pays it. 

Good Afternoon, @jennaisbell. 

I here to give you some additional information on your issue about Etsy income within your QuickBooks Self-Employed. My colleague @MaryLandT did provide the correct information to your question. However, since this is becoming a unique request for your business, then I recommend consulting with your accountant. They'll be able to advise you on what route to take so that this will be correct in your books. 

Here's an extra link that may be helpful: Etsy and QuickBooks Self-Employed. 

If you have any other questions, feel free to ask. Have a wonderful day!

@jennaisbell 

Explore this AST Reporting and Filing app for Etsy seller to complement your QBO.

https://taxjar.grsm.io/mytax

Hope it helps.

I did talk to my accountant. They told me to contact you to see if there was an easy way to fix the integration so the numbers were right . The info I get directly from Etsy is correct. My issue is how it is handled in QuickBooks. Also this is not a "unique to my business issue". I came here to ask after reading countless questions regarding the same thing from other Etsy users. I honestly would just like to talk to someone from customer service but you guys make that very difficult. At this point I think just tracking everything on my own was easier. 

We value your time and business here, @jennaisbell.

We want to ensure you'll get the best service while also ensuring you'll get the help needed to finish your tasks easier. Ideally, your sales tax payments processed from Etsy are categorize as an expense for your business.

But if you needed more in-depth discussion in categorizing your sales tax payments, I'd recommend reaching out to our TurboTax Support team. Someone from there can appropriately explain the categorization and how it works.

I'm also adding this helpful article for more ideas in managing your Self-Employed account.

If you need anything else, please let me know. Always around ready to help.

I know what it needs to be categorized as. I know I can do it myself. I just wanted to know if there was a way where it would do it automatically since part of the appeal of linking with Etsy is not having to go through and edit everything. So when single sale goes into QuickBooks it would be nice if it auto splits the Shipping, Sales Tax and Purchase. The answer seems to be no. 

Thanks for getting back in touch, @jennaisbell.

Since the integration was developed by Etsy themselves, we won't be able to modify how the integration handles tasks in QuickBooks. It's possible to implement the features you're referring to, but to suggest that idea, you'll need to get in touch with the developers at Etsy. To comply with our Community Guidelines, I can't post a link here, but if you do a quick search you'll be able to find their contact information.

If you have any further questions, we'll be here to help. Have a wonderful day.

Did you ever find a resolution to this?! I'm wondering the exact same thing.  

Good day, wendls02.

As mentioned in this thread, the transactions from Etsy includes the money they collect for sales tax. QuickBooks Self-Employed is dependent on what they'll provide and doesn't know anything about sales tax they collected.

It's best to reach out to Etsy to see if they have any option to automatically split the transaction when they send them to QuickBooks Self-Employed. 

You can check this link for more details: Manually track sales tax in QuickBooks Self-Employed.

Post again here if you have more questions. Take care!