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Community Contributor *

How do I sync sales tax correctly from PayPal?

I have tried syncing PayPal with the old app, with the "bank account" method, and with the new "Connect to PayPal" app that shows up like a bank account. And they all have the same problem: Sales Tax collected in PayPal does not show up as sales tax in QBO.

For example, say I sell a $10 item and the tax is $0.93 (oh yeah, gotta love California). That shows up in PayPal like this:

Item: $10
Sales tax: $0.93
Gross Total: $10.93

But when it syncs to QB the resulting sales receipt reads like this:

Item: "the item" $10
Item: "tax amount" $0.93
Sales tax: $0.00
Total: $10.93

So it's the right total but the sales tax is getting recorded as sales income, not as collected sales tax. To get the sales tax logged correctly I have to manually delete the sales tax line item and prompt QB to recalculate the tax.

Anyone know how to get PayPal sales tax syncing correctly? Thanks.

13 Comments
QuickBooks Team

Re: How do I sync sales tax correctly from PayPal?

The way your transactions are synced into QBO is based on your PayPal setup, Robgwin.

When the format of the sales tax is different, that's because no match was found for the transaction in QBO. This is why the sales tax from PayPal will appear under the selected item in QBO.

During the PayPal set up, you'll have to select the Sales Tax account. This is to ensure that the mapping of the synced transactions is correct.  You can go back to the settings and edit the account. Please take note that changing it will not affect the previously synced transactions. This will take effect on the next time you import them.

To do this task, follow the steps in the From the App Center or From within QuickBooks Online section of this article: Modify settings for Sync with PayPal. You can also check the table below to learn more about the mapping of transactions.

I'll be here if you need anything else. Thanks for dropping by.

Community Contributor *

Re: How do I sync sales tax correctly from PayPal?

Hi Sophia, thanks for this reply. Unfortunately I'm not able to get to the settings you mentioned.

 First, the app I have installed in QBO is called "Connect to PayPal" not "Sync with PayPal" as indicated in the support article you linked to. I can't even find an app called "Sync with PayPal" in the Find Apps section, I think maybe that's an old app that's been discontinued?

 Anyway if I try accessing the Setting for the "Connect to PayPal" app it takes me through the initial setup steps again... which eventually lead to an error saying that there's already an app connected to PayPal (which is true cause I already connected it and it is syncing stuff).

 

QuickBooks Team

Re: How do I sync sales tax correctly from PayPal?

Hello there, @robgwin.


Let’s run through this so you’ll be able to get PayPal sales tax sync with QuckBooks.


As mentioned by my colleague @SophiaAnnL, sales tax is selected during the initial PayPal setup. If the Sales tax is turned on and mapped upon setup, you have the option to edit it anytime. I'd be glad to show you how by following the steps below:

  1. Go to the Banking tab.
  2. Select the Pencil Icon on PayPal card.
  3. Click Edit Settings then choose a new rate.

Here's an article that you can visit this article to learn more about Connect to PayPal application: Connect to PayPal Guide.


Should you have any other questions about Connect to the Paypal app, just let me know as I'm always here to help.

 

Community Contributor *

Re: How do I sync sales tax correctly from PayPal?

I think something was wrong with Connect to PayPal. As I mentioned above when I clicked settings it never took me to the settings it took me to the initial setup steps, which failed if I tried them because I’d already done it. Eventually I tried deleting the app and it hosed my entire “banking” view... all back accounts disappeared and it said “something went wrong”. I had to contact QBO support who finally escalated to internal tech support to fix some database problem or something.

 

So my other bank account syncs are restored but I think I’m done with PayPal Connect. Doesn’t seem to be production ready just yet. Trying a new app called Business Payments. So far so good, though they wanna charge a fee after a certain number of transactions. Ugh.

Community Contributor *

Re: How do I sync sales tax correctly from PayPal?

The "Business Payments" app made my Banking page completely unusable -- all my bank account feeds were gone and it said "Something went wrong". After two long calls with QBO support failed to solve it I finally tried deleting the Business Payments app and my feeds are back.

 

So now I've apparently got the "Connect to Paypal" feed STUCK in my banking page. I can't edit the settings. If I click the pencil and "edit settings" it says "Sorry for the inconvenience. Unable to find an active connection for the account specified."

 

So I tried going to the Apps section and adding "Connect to Paypal" from scratch. That sort of works but with many problems:

1. PayPal now shows up twice on my Banking page.

2. It won't let me associate the newly installed PayPal app to my existing PayPal bank account, it only works on a new empty account -- presumably because it thinks my existing PayPal account is already synced to the OLD PayPal app, even though the OLD PayPal app doesn't seem to think so.

3. Getting back to the original question of my post, the PayPal Connect settings don't say anything about sales tax. Here's a screenshot of what I see in the settings.

 

PayPal in QBO is turning out to be a holy nightmare...

QuickBooks Team

Re: How do I sync sales tax correctly from PayPal?

Hi there, @robgwin.

 

I appreciate you running some tests to resolve this issue with Paypal. I can share some reasons why you aren't able to connect and sync Paypal transactions with QuickBooks.

 

Currently, we're experiencing some difficulties in connecting with Paypal which is why you can't set up and connect your Paypal account successfully. In order for us to further investigate the common components between those affected, I suggest giving us a call again.

 

I'd like to have your concern handled in a secured environment. When calling in, you can provide your case number. This way, the next agent will be able to know the initial troubleshooting steps you've tried. They have extra tools, such as screen sharing, to better isolate this.

 

For the contact number, you can refer to this article: QBO Customer Care Team.

 

And of course, I’m here to help you if you have other concerns. Please also keep me posted on how the call goes. I'd like to make sure this is taken care of.

Community Contributor *

Re: How do I sync sales tax correctly from PayPal?

Okay, Intuit appears to have fixed the BIG problem preventing the Paypal sync from working at all, so now I can get back to my original problem above: syncing sales tax correctly. The answers so far from @SophiaAnnL and Charies_M suggest that I should be able to configure sales tax options in the PayPal Connect settings. But I don't see anything having to do with sales tax in the settings. Attached screenshot shows everything I see in PayPal Connect settings, whether I get there via the Banking page (click pencil on paypal bank account and edit settings) or the My Apps page (action > settings). Where are these sales tax settings everyone's referring to?

QuickBooks Team

Re: How do I sync sales tax correctly from PayPal?

Thanks for getting back, robgwin.

 

I appreciate the additional information you provided. Let's get this sorted out.

 

Have you tried to check if the sales tax option is turned on in your QuickBooks Online? If not, let's make sure to enable it. Let me show you how below:

  1. From the left menu, click Taxes.
  2. Click Set up sales tax.
  3. Fill in the address of the business.
  4. Click Next.
  5. Continue to fill in the necessary information.
  6. Click the Next button.

Once done, QuickBooks will automatically set the correct tax rate and direct you back to the home screen. 

 

Let me know how this steps works. I'll be sure to get back to you if you need more help. 

Community Contributor *

Re: How do I sync sales tax correctly from PayPal?

Oops, missed this reply on Friday. But yes, I have already set up sales tax in QBO. When I go to Taxes there is no "set up sales tax" link. There is a "Sales tax settings" link and it shows that I have activated California sales tax (see screenshot).

 

Moreover, QBO will correctly calculate sales tax on sales if I go in manually and edit. So sales tax is generally working. But sales tax still isn't syncing correctly from PayPal. 

Moderator

Re: How do I sync sales tax correctly from PayPal?

Thank you for reaching out to us, robgwin.

Let me take over and help point you in the right direction.

 

I'd like to check this for you and get it taken care of myself. However, I won't be able to check your account without asking for sensitive information. I don't want your account information displayed here for security reasons since Community is a public forum.


It would be best if you reach out to our Customer Care Team who can review the details and make sure that you'll be provided with the right resolution. You can get our most-up-to-date contact number here: https://quickbooks.intuit.com/community/Getting-Started/Get-help-with-QuickBooks-Online/m-p/185932.

 

I'll be around if you need further assistance. Have a great rest of your day.

Community Contributor *

Re: How do I sync sales tax correctly from PayPal?

Contacted support and they said that's just how it works and it's not possible to sync sales tax properly from PayPal. So I guess it's time for me to try Xero out, if they can sync paypal correctly I might have to switch...

Moderator

Re: How do I sync sales tax correctly from PayPal?

Hey there, robgwin.

I'm here to lend a helping hand in syncing your sales tax from your Paypal account.

 

There are three ways to connect with PayPal to your QuickBooks Online. If Bank feeds don't work for you, you can try to sync with PayPal app with your QuickBooks Online account. You can get this app at apps.intuit.com, or via Apps tab in your QuickBooks Online.

 

Here's how:

  1. Login to your QuickBooks Online account
  2. Select Apps from the left menu.
  3. Select Find Apps, then enter Paypal into the search bar.
  4. From the choices, choose Sync with PayPal.
  5. Select Get App Now in the upper right.
  6. Choose the appropriate answer to the question, then select Next.
  7. Select Connect to Paypal, then choose Let's do it.
  8. Follow the remaining steps to connect and set up the app settings to your choice.

For more details, check out this article: https://quickbooks.intuit.com/community/Apps/Sync-with-PayPal-First-time-setup/m-p/186330#M23. Also, you may find this article helpful: Differences between Sync with PayPal app, PayPal Bank Feeds and the all-new Connect to PayPal app.

 

Let me know how it goes, I'll be around to help. Have a good one.

Not applicable

Re: How do I sync sales tax correctly from PayPal?

@RoseMarjorieA You know that you actually didn't provide any new or additional information. If you can't process taxes as a part of the app with Paypal, just say so. Does anyone have a solution?

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