How do I set-up VAT?

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Introduction

If you use QuickBooks Online U.K., the system will automatically assign Z or S on each line. If you are using Cloud Cart with an EU-member country, such as Spain, you will need to map tax codes.

If I am from the United Kingdom, how do I set-up VAT?

Before adding tax codes in Cloud Cart Connector, you must set-up VAT in QuickBooks Online. To set-up QuickBooks VAT, follow these steps:

  1. Login to QuickBooks Online.
  2. Click VAT on the left menu.
  3. Follow the on-screen instructions.

Cloud Cart can use VAT number, if supplied, to determine tax. The UK tax codes are always the same, so there is no need to map them. Cloud Cart can determine whether a country is an EU member.

If I am from an EU Member Country, how do I match tax codes?

In this example, we will match a tax code for Spain:

QuickBooks

You must add codes:

  1. In QuickBooks, click tax on the left.
  2. Click rates and settings.
  3. In the dialog, click next.
  4. Add a new tax code with the percentage: 

Cloud Cart Connector

You must add mappings:

  1. In Cloud Cart, click Configure at My Connections (Home > My Connections).
  2. On the left-hand navigation, click Sales Tax Mapping.
  3. Click add new code.
  4. Choose a tax code and add the country: 
  5. Click submit.

Here is the end result:

If the country is ES and there is a tax, Cloud Cart will apply the tax code.

Can I sell products whose tax exclusive rates are three decimal places?

QuickBooks Online will round up to two decimal places. If you sold a product for 2.49 tax inclusive, QuickBooks would use 2.08 and calculate 2.50 as the item rate. Here is an example of QuickBooks rounding.

If you wish, Cloud Cart can add a discount to balance the order. Here are the steps:

  1. On the Cloud Cart global settings page (Home > My Connections > Configure), scroll down and click the Advanced Transaction drop-down.
  2. Under transaction settings, check fix rounding errors.
  3. Click Sync Now to save.

This is an example order with the discount.

Can I change the tax mapping for each country?

Yes, please read this guide.

Can I disable VAT, based on the SKU or Selling Channel Name?

Yes. Login to Cloud Cart. On the left-hand navigation, click "Rules Engine." Replace the SKUs or store names in the attached sheet. You need one rule per SKU or selling channel.

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