Configure Connex for QuickBooks Online for Sales Tax
There are two steps for mapping tax. They are adding tax codes to QuickBooks and assigning them to states in our system.
Add Tax Codes to QuickBooks
You must have tax codes in QuickBooks, which map a percentage and a U.S. state. Here are the steps:
- Login to QuickBooks Online.
- On the left, click sales tax.
- On the right, click add/edit tax rates and agencies.
- Click new:
- Complete the on-screen instructions.
Map Tax Codes to Shipping Address States
Connex for QuickBooks Online can match the order shipping address state or region to a QuickBooks tax rate. You must set up the rates in QB, login to CCC and click link beneath sales tax. The tax rates populate from QuickBooks. For non U.S. countries, leave the city field blank. Enter your two letter country, two letter region, and choose your tax rate. For U.S. customers, please follow these steps:
1. Login at the Connex for QuickBooks Online website.
2. On the configure page, enter your e-commerce solution credentials.
3. On the settings page, scroll down to tax settings.
4. Where it asks if you’re using Canada or the United Kingdom edition, click the link. If you’re using the U.S. edition, click the link asking to map sales tax.
5. Click add new tax rate.
6. Enter your tax rate, region, and country.
If you were charging tax in California, add your tax code, CA as the state and US as the country. All orders where the shipping state is Massachusetts will map to your QuickBooks tax code.
If you’re using Canada or the United Kingdom, you’ll see a list of tax rates containing GST, PST, or VAT and you’ll enter the two letter region:
If you come from a state where the tax is the same everywhere in the region, then leave the city blank. Otherwise, enter the city affiliated with the tax rate. If you enter a tax rate without a city, the system will match all orders from that state with the tax code.
Out of State
If you create a tax code mapping and set the region to NA, you can assign all $0 tax orders with a default tax code:
On the tax code form, here is the mapping:
The NA tells our system to apply the tax code to all $0 tax orders. The tax code can be called anything you want.
Here is the QuickBooks transaction:
This will enable you to pull a report of non-taxable sales in QuickBooks:
Match Tax by County or Zip Code
Many U.S. states have a different tax rate depending on roof top location. QuickBooks applies a tax rate, based on a predefined tax code, and you can only have one tax rate per code. It can be cumbersome to have a QuickBooks tax code for each zip code in a U.S. state. Our system can match a single tax code to a U.S. state.
Here are the steps:
- At the configure page, scroll down to sales tax.
- Check the box for match tax code by county / zip code.
- Click save and sync.
- On the left, click sales tax.
- Click add new.
- Enter your state and tax code.
- Click submit.
Add Tax as a Service Line Item
For states where the tax changes depending on your city, we recommend adding tax as a line item because QuickBooks isn’t made to handle taxes by city. On this site, you can see which states are ideal for tax as a line item.
The setting is beneath the Sales Tax area of the configure page. If you’re using a third party service like Avalara, you do not use QuickBooks to manage Sales Tax payable. This will add the order total tax as a line item and balance your transaction. To add tax as a line item, check the box under transaction settings for create tax as a line item. Here is an example using Florida 6%. To move funds to sales tax payable, read this article.