Sales taxes sync with US based QuickBooks companies
The majority of US QuickBooks users have the so-called automated sales tax feature, which allows QuickBooks to apply taxes automatically based on the address of the sale or the company address. In case of US-company connected Synder can only mark products as taxable or nontaxable based on any tax coming or not coming from the payment processor, tax percentage is calculated by QuickBooks Online. If you want Synder to record taxes into the tax field for correct tax reporting, please enable the setting as on the screenshot below.
If you want the tax to be simply included in the sales total, disable it.
Sales taxes sync with Xero or Non-US based QuickBooks companies
NB: Synder calculates taxes based on the sales total amount and the tax amount it receives from your payment platform, and then matches the calculated rate to the tax codes that you have in your QuickBooks/Xero.
NB: There is no way to set the taxation type (Tax Inclusive or Exclusive) in the app, it will be applied automatically based on the way they were charged by the payment processor.
Usually, when taxes are calculated on the payment processor side, Synder will record them in QuickBooks/Xero. However if you do not have taxes in your Stripe, PayPal or other systems and there is nothing to record Synder tax settings may be of use.
This is what you’ll see if you are a non-US company and click on Gear → Taxes:
1 – Default tax code
If you do not have the tax with the needed percentage set up in your QuickBooks/Xero, you can specify the one that is to be used by default using the “default tax code” setting. This will secure you from failed transactions in case the tax code with the percentage needed is missing in your accounting system.
2 – Zero-rated tax code
There is a separate setting for “zero-rated tax codes”, which is used if the tax amount coming from the payment processor is $0. So you can be certain that the tax is recorded as 0.0% Z and not as Exempt, for example.
3 – Apply generic tax code
If you enable “generic tax code”, it will mean that all your transactions will go into your QuickBooks/Xero with the specified tax code. However you can choose if you want the tax code to override existing taxes from your payment processor or if you want it to be applied only to transactions that are not taxable using settings 4 and 5:
4 – Apply generic tax: If transaction contains taxes
If you specify the tax code in this field, Synder will override the tax amount from your payment processor with the tax rate you specified. This setting can be used to correct tax amounts recorded in the payment processor.
5 – Apply generic tax: If transaction does not contain taxes
If you specify the tax in this field Synder will apply a tax only to the transactions that do not have tax on the payment platform side.
Expense tax settings
6 – Finally, there is a killer feature of the app: taxes on fees, which are required by some jurisdictions. Learn how to apply taxes on fees in QuickBooks.
Congratulations, you have set up the app to apply taxes to any synced Sales transaction!
If you have any other questions, please use the contacts specified in the footer of the page or, alternatively, initiate our in-app support chat. We will be more than happy to help!