When syncing WooCommerce orders to QuickBooks Desktop, MyWorks Sync is able to handle a variety of different tax scenarios - dependent on both the tax rates charged in WooCommerce, and how these tax rates are set up in QuickBooks Desktop.
While MyWorks Sync would not be able to sync tax rates from one platform to the other (they must be set up manually, as desired in both WooCommerce and QuickBooks Desktop) - tax rates can be mapped together in MyWorks Sync > Map > Tax Rates once present in each platform.
The way in which tax rates would be mapped together would depend on the country you're present in, and this doc helps provide a guide of the recommended way in which we usually see tax rates handled in our sync - based on the country you do business in.
While these best practices will generally apply, it's best first to ensure your tax rates are correctly set up in both WooCommerce and QuickBooks with your accountant - and our support team is always available to assist with ensuring they're accurately mapped together in our sync.
United States
Setting up tax rates when selling in the United States can generally be broken into two scenarios - depending on if you use an Automated Sales Tax service to calculate taxes in WooCommerce, or if your rates are manually set in WooCommerce > Settings > Tax in your WooCommerce store.
An automated sales tax service is being used in WooCommerce
When an automated sales tax service is used in WooCommerce, MyWorks Sync supports syncing these calculated rates within the taxed orders synced from WooCommerce to QuickBooks.
This would occur as a line item in the order in QuickBooks, as it's not possible to map automatically generated rates in WooCommerce to the static rates that would be present in the QuickBooks item list.
What's needed:
- In MyWorks Sync > Settings > Tax, setting a taxable and non-taxable code - normally "Tax" and "Non".
- In MyWorks Sync > Settings > Tax, enabling the setting to sync tax as a line item, and choosing a sales tax item in QuickBooks.
- There is no need to map tax rates in MyWorks Sync > Map > Taxes, as these are automatically generated in WooCommerce, and would continue to change.
Under these circumstances, our sync will sync WooCommerce orders that are taxed with the correct amount into QuickBooks Desktop - as a line item.
Manual rates are set up in WooCommerce settings
When using manual rates in WooCommerce, your tax rates simply need to be set in your WooCommerce settings, and then added as Sales Tax Items in your QuickBooks Desktop Item List. Once added in both WooCommerce and QuickBooks, they can be mapped together in MyWorks Sync.
What's needed:
- In MyWorks Sync > Settings > Tax, setting a taxable and non-taxable code - normally "Tax" and "Non". The tax code format should remain set to "Sales Tax Item".
- In MyWorks Sync > Map > Tax Rates, your WooCommerce tax rates should be mapped to the corresponding QuickBooks tax rates.
Once set, orders will sync from WooCommerce to QuickBooks honoring the way in which they were taxed (or not taxed) in WooCommerce.
Canada
Tax Rates in Canada are generally uniform, and almost always consist of 13-17 static rates that are charged across different provinces - usually GST, HST, PST - and sometimes a combination of GST and PST.
In WooCommerce, these rates should be manually set up in WooCommerce > Settings > Tax. No automated sales tax calculation service should be necessary in WooCommerce, as these rates do not vary once set up.
In QuickBooks, these rates can be added as Sales Tax Items in the Item List, if not already present. Once added in both WooCommerce and QuickBooks, they can be mapped together in MyWorks Sync.
What's needed:
- In MyWorks Sync > Settings > Tax, setting a taxable and non-taxable code - normally "G" and "E". The tax code format should be set to "Sales Tax Code".
- In MyWorks Sync > Map > Tax Rates, your WooCommerce tax rates should be mapped to the corresponding QuickBooks tax codes - normally called G, H, P, etc.
Once set, orders will sync from WooCommerce to QuickBooks, honoring how they were taxed (or not taxed) in WooCommerce.
United Kingdom and other areas
Tax Rates in the United Kingdom - and any other areas charging a single VAT rate are generally very straightforward, as only the VAT rate charged (usually 5% or 20%) would need to be present in WooCommerce and QuickBooks, then mapped together in MyWorks Sync.
In WooCommerce, these rates should be manually set up in WooCommerce > Settings > Tax. No automated sales tax calculation service should be necessary in WooCommerce, as these rates do not vary once set up.
In QuickBooks, these rates can be added as Sales Tax Items in the Item List, if not already present. Once added in both WooCommerce and QuickBooks, they can be mapped together in MyWorks Sync.
What's needed:
- In MyWorks Sync > Settings > Tax, setting a taxable and non-taxable code - normally "G" and "E". The tax code format should be set to "Sales Tax Code".
- In MyWorks Sync > Map > Tax Rates, your WooCommerce tax rates should be mapped to the corresponding QuickBooks tax codes - normally called G, V, etc.
Once set, orders will sync from WooCommerce to QuickBooks honoring the way in which they were taxed (or not taxed) in WooCommerce.