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Experienced Member

Excise-Sales tax Collected on Behalf of Client

Hi,

 

Our product is delivered by an outside vendor to various retail locations through out the state of California. When product is delivered, the retailer (customer) pays the delivery service for the product & the tax.  The delivery service remits the tax to the state of CA on our behalf & delivers the cash for the product to us. How do we reflect in QuickBooks Online the sales tax collected & paid by the delivery service?

On rare occasions the customer has terms & will send the payment including the taxes to our office.

 

Thanks!

3 Comments
Established Community Backer ***

Re: Excise-Sales tax Collected on Behalf of Client

In CA do you have to report the taxable sale even if the third party collects and remits the tax?

customers who pay you direct are handled like any other taxable sale you make

Experienced Member

Re: Excise-Sales tax Collected on Behalf of Client

That's my question: how does a business report taxable sales when the taxes are collected & remitted by another entity on behalf of our company?

Established Community Backer ***

Re: Excise-Sales tax Collected on Behalf of Client

so fa the only state I know of that has to do that is WA and amazon

 

so the question is do you have to?  If not then I would track them using a new sales tax item set to a zero rate named for the company collecting and meriting