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, like Spain, you need to map tax codes.

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

Before using our software, 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 a 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 QB, 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

You must add mappings:

  1. In Cloud Cart, click submit at my connections.
  2. On the left, click sales tax.
  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 tax, Cloud Cart would 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 QB rounding.

Cloud Cart can add a discount to balance the order. Here are the steps:

  1. On the Cloud Cart configure page, click the advanced tab.
  2. Under transaction settings, check fix rounding errors.
  3. Click submit.

Here 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?

Login to Cloud Cart. Hover over the gear and 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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