Sales Tax on Shipping


L

LoggJamm

I just found that our state charges Sales Tax on Shipping.

Does anyone know of a way to have Quickbooks Pro charge Sales Tax on instate
shipping charges and not charge tax on out of state shipping charges when
doing invoices?

I know how to do it manually, but there has to be an automated solution.

Thanks
 
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G

Golden California Girls

LoggJamm said:
I just found that our state charges Sales Tax on Shipping.

Does anyone know of a way to have Quickbooks Pro charge Sales Tax on instate
shipping charges and not charge tax on out of state shipping charges when
doing invoices?

I know how to do it manually, but there has to be an automated solution.

Thanks
Well, there is. Use one item code for intra state and one for inter state
shipping charges. Then set one to be taxable and one non taxable.

Seriously, there are usually so many combinations of possibilities in tax law
that only a human can make a decision on if a particular line item is or is not
subject to sales and use tax.

You'll likely find once you read a bit more about transportation charges in
your states sales tax code that if you don't mark them up over your cost that
sales tax doesn't apply. How is QB supposed to know that and automate it?
Also it may be different if you use your own truck to deliver vs having the
Post Office deliver. Again how is QB supposed to know this?

Sorry, you have to teach the people who create your invoices and sales receipts
about your state's sales tax law in all its gory detail. Your state may offer
a class in this, so call your state sales tax people and ask them if they do.
 
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M

MacroMan

It may be a moot point if you are only collecting sales tax in your own
state anyway. In that case, your sales tax item such as "Out of State
Sales Tax" would have a zero rate. But in reality, I agree with
LoggJamm that it's highly unlikely that the state expects you to pay
sales tax on that portion of the shipping charge that is a
reembursement of your third party shipping cost. Charging sales tax on
any excess IS a taxable issue, but considering the minor amounts in
question, I'd ignore collecting tax on it. (assuming your average pass
through is reasonably close to your average cost) The last time I had a
sales tax audit, they were so busy loking for the big stuff, they
consciously ignored things like this and did not even ask me to fix it
for the future. The auditors are much more sympathetic to your
difficulties in compliance than are the friggin' morons who vote on all
this complicated code (and never read it before voting on it).

Craig
 

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