Bookkeep tracks sales tax withheld by specific channels so your reporting is correct for Shopify
Bookkeep is now able to capture “Sales Tax Withheld” data for sales channels in Shopify that collect and withhold the sales tax on behalf of the seller. For those impacted accounts, please map “Sales Tax Withheld” to the same account as “Sales Tax Collected” as well as any sub-accounts.
As an example, items sold via Facebook with sales tax collected result in sales tax being commonly withheld by Facebook. We capture this withheld portion to ensure you are not overpaying your sales tax liability.
When merchants sell on multiple sales channels, it can be difficult to determine whether the merchant or the sales channel is responsible for remitting sales taxes. For example, most marketplaces are the liable party for sales tax, and should be excluded from merchant sales tax filings.
This new addition lets merchants know that another party is responsible for sales tax remittance, which then helps merchants better understand the tax that they are responsible for.
In the example below you will see how sales tax withheld for Shopify ties out to the sales by channel report available in the Shopify dashboard.
If you have any questions, feel free to contact firstname.lastname@example.org.