- Original Poster
- #1
Hi. I'm just doing our 1718 accounts and have come across something that I'm not sure how best to account for.
We sell on Etsy and at the start of this year they started collecting state sales tax for Washington and Pennsylvania. This tax is automatically calculated, added to the price that the customer pays and then collected by Etsy and remitted directly to the state's tax authorities. We never receive it or do anything else with it and it doesn't affect the fees we pay Etsy.
Clearly, however it's accounted for there is zero effect on our profit, however I'm unsure whether it should or should not be included in our turnover figure. If it's included it will obviously increase our turnover.
I was just wondering whether anyone had an opinion or some insight into this? Thanks!
We sell on Etsy and at the start of this year they started collecting state sales tax for Washington and Pennsylvania. This tax is automatically calculated, added to the price that the customer pays and then collected by Etsy and remitted directly to the state's tax authorities. We never receive it or do anything else with it and it doesn't affect the fees we pay Etsy.
Clearly, however it's accounted for there is zero effect on our profit, however I'm unsure whether it should or should not be included in our turnover figure. If it's included it will obviously increase our turnover.
I was just wondering whether anyone had an opinion or some insight into this? Thanks!
