Offset Marketplace Tax Liabilities and Make Sales Tax Inactive

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Learn how to offset or pay your marketplace sales tax liabilities in QuickBooks Online and mark those Marketplace Tax states inactive.

We’ve updated how we handle Marketplace Facilitator Taxes. As a result of the update, you may want to update your QuickBooks Online company.

This guide may apply to you if you signed up with SellerZen prior to April 25, 2019. 

If you were required to set up sales tax agencies for the Marketplace Facilitator Taxes, then you’ll need to offset or “pay” those sales tax liabilities in QuickBooks Online using the Marketplace Facilitator bank account. 

Click on the link below to learn how to offset those liabilities.

Once you’ve “paid” those sales tax liabilities, you can mark those sales tax agencies as inactive.

Some users on the new automated sales tax engine may have an issue with incorrectly applied refunds to tax liability accounts because of a QuickBooks Online update.

The only active tax agencies should be ones where you’re required to collect and remit sales tax.

Your Marketplace Facilitator bank account should now have a balance of 0.00.

To do that, click on Taxes > Sales tax settings. Click on the dropdown menu for all the states affected by the Marketplace Facilitator taxes and select “Make Inactive.”

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