A tariff is a tax the government charges on items you bring into the country. These fees eat into your bottom line if you pay them out of your own pocket.
Passing tariff costs to your customers keeps your business profitable when importing goods.
QuickBooks Online gives you a simple way to bill this cost to the buyer. You can bundle it into your price or list it clearly on the sales receipt.
This guide shows you how to set it up.
Option 1: Include the Tariff in the Product Price
Bundling the tariff into your main price is the cleanest way to handle these costs.
It works best when you have a standard tariff rate that rarely changes.
Pros:
- Clean, simple invoices.
- Customers only see one total price.
- Ideal if tariffs stay consistent.
Cons:
- Less transparency on costs.
- Requires updates when tariffs change frequently.
Steps:
- Go to Sales > Products and Services.
- Locate the product and click Edit.
- Update the Sales Price to include the tariff.
- Save and close.
💡Click to view full image
Option 2: Add the Tariff as a Separate Line Item
Option 2 keeps your billing transparent by separating the government fee from your product cost. It's the best choice if tariff rates fluctuate often, as you won't need to update your base prices constantly.
Pros:
- Customers see exactly what they’re paying for.
- Easy to adjust if tariffs vary.
- Useful if only certain customers are impacted.
Cons:
- Invoices may look more complex.
- Customers might question the fee.
Steps:
- Go to Sales > Products and Services.
- Click New > Non-inventory item.
- Name it (e.g., “Import Tariff Fee”).
- Assign it to an Income account.
- Set a flat fee or enter a percentage manually when invoicing.
- If tariffs shouldn’t be taxed, mark the item as Non-taxable.
- Save.
- Add the tariff line item to invoices or sales receipts.
💡Click to view full image
Example:
|
Item |
Qty |
Rate |
Amount |
|---|---|---|---|
|
Product A |
1 |
$100 |
$100 |
|
Import Tariff Fee |
1 |
$10 |
$10 |
|
Total |
$110 |
