Business Payments: How to Apply Taxes to Any Sales Transaction

featured-4

Apply taxes in QuickBooks to any Sales transactions from Stripe or PayPal synced with the app

Overview:

  1. Tax applied for Non-US companies
  2. Tax applied for US companies with no Automated Taxation System
1. Non-US QuickBooks companies

Due to Generic Tax Code feature, the app will be able to apply tax rate you specify in the settings to both taxable and non-taxable Sales transaction synced with our app. You can enable this easily in the settings of the app following these instructions:

 

  • Click gear Icon on the top of the screen (1) and go to Taxes tab (2). Make sure you set “Apply generic tax code” to ON status (3).
Apply Taxes to Any Sales Transaction using Business Importer

In the “Generic tax code” drop down you will see all the tax rates set up on your QuickBooks. Select the one you would like to be applied to each Sales transaction that you are going to sync.

Note: there is no way to set the taxation type (tax Inclusive or Exclusive) in the app, it will be applied automatically by QuickBooks.

 

See the possible outcomes of sync on the QuickBooks side:

a) Transaction doesn’t have tax in the Payment system, the app calculates the tax and makes the transaction amount Tax Inclusive.

Example: In your Stripe, you have a payment with no tax applied to a transaction, in the app you set up 13% Generic tax code. In QuickBooks after sync, you will get Sales Receipt with 13% tax inclusive amount.

22

b) If the initial transaction has the tax, then the app will keep taxation type (either tax Inclusive or Exclusive), however, the app will recalculate the tax amount according to the rate set up in the app.

Example: In your Stripe you have an invoice with 5% tax-exclusive applied, in the app you set up 13% Generic tax code. In QuickBooks after sync you will get an invoice with 13% tax exclusive amount.

33
2. QuickBooks Companies With No Automated Taxation System

Due to Generic Tax Code feature, the app will be able to apply tax rate you specify in the settings to both taxable and non-taxable Sales transaction synced with our app. You can enable this easily in the settings of the app following these instructions:

 

  • Click gear Icon on the top of the screen (1) and go to Taxes tab (2). Make sure you set “Apply generic tax code” to ON status (3).
44

In the “Generic tax code” drop down you will see all the tax rates set up on your QuickBooks. Select the one you would like to be applied to each Sales transaction that you are going to sync.

Note: for US companies only Exclusive taxation type is available, so the app will default to this.

 

See the possible outcomes on the QuickBooks side:

Either the transaction does have or doesn’t have tax in the Payment system, the app while sync will calculate the tax according to settings and make the transaction amount Tax Exclusive:

    a) In your Stripe you have invoice with no tax applied to transaction, in the app you set up 13% Generic tax code. In QuickBooks after sync you will get invoice with 13% tax exclusive amount.

    b) In your Stripe you have invoice with 5% tax inclusive applied, in the app you set up 13% Generic tax code. In QuickBooks after sync you will get invoice with 13% tax exclusive amount.

55

Note: Generic Tax Code feature is not available for QuickBooks companies with Automated Taxation System, as QuickBooks itself calculates taxes for such kinds of companies.

 

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!
aleksandra.kozyritskaya

This entry has 0 replies

Comments open

Leave a reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>