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QSSConnect tax setting options – Outside Australia/New Zealand/United Kingdom

  • by admin Aug 04, 2017

If you are outside the countries listed above you can import the custom tax types you created in Xero and map these to your MINDBODY tax data values. You have the option to “Retrieve custom tax types” or use the default and have all tax sent to the Xero standard of “Output”.

 

Using custom tax types is handy if you are wanting more detail on your sales taxes or are reporting to several tax jurisdictions.

 
If you choose to import your Xero tax types you will see something like the following. The example below is using some custom entered Canadian tax rates to illustrate our point. 

 

In this example we have GST for British Columbia at 5%, as well as HST for Ontario at 13% and GST/PST for Manitoba at 13%. The lines highlighted in red are new tax rates retrieved from Xero. From here you can assign state or province codes to these as required (so type in the province or state code in the “Assign to state” field). If there are no duplicates then it is not necessary to assign state/province codes as these codes will be used whenever the tax is encountered. If you have duplicate rates you will need to assign them a state/province code.

We can now assign the tax values to each state (or province for our Canadian example) by entering the same code we use in the “location” area (on the system settings page) in the field above labelled “Assign to state”. To assign a code to multiple states you can separate the codes with a comma (but no spaces are permitted). Use the same codes you are using for your locations in the locations settings area of QSSConnect and your state codes from MINDBODY.

You also need to set the “Tax tolerance” in the “Tax Tolerance” field. This is where you determine the level of accuracy for tax rate matching. As we only get a numerical tax value from MINDBODY we need to calculate this tax as a percentage of the sale to then assign it a tax code. If you have tax values that are close together, eg: 9.0% and 9.25% for example you should look to set the tax tolerance at half the difference between your smallest tax differences – so in the example of 9% and 9.25% it is a good idea to set the tolerance at 0.125%. This way if small values are encountered and need to be rounded they can be more accurately assessed and assigned a code.

 So you can now enter your state/province codes and click “Save” to create the settings for each “State” or province.

 

You only need to copy tax rates to the default when there are duplicates and you have the same tax rate and state code as possibilities for products, and you can then set product exceptions in the lower grid on a product by product basis, so if you had two options for 0% in your state or province you would need to set one as the default.

Remember that if you have the same code for multiple states or provinces (but not all provinces) then you can set multiple values by using a comma to separate them.

So how does QSSConnect determine if my sale with 13% tax belongs to Ontario or Manitoba?

Once you have assigned your codes to each state you then need to go to the locations section of QSSConnect to map the location sales coding – as below:

 

 

In the above example we have said that any sales made at our Ontario studio are assigned a tax code by location, so when we process a sale from the Ontario studio and we see 13% as the tax code we know to assign it to Ontario tax code of TAX006 HST-Ontario before it is sent to Xero.

What about an online store where tax is based on the customer address – how will that work?

This time we set up our “Online store” location and we assign it to “Tax by customer address”, so we would select as below:

 

Now if we make a sale in our online store it will look at our tax table and determine the tax code based on the state/province code from the customer address. So in the example here, if my Online store in MINDBODY sells an item at 13% to a customer with an address in Manitoba then QSSConnect will assign a tax code of TAX005 GST/PST-Manitoba to that item on that sale.

This is an option you can use if you wish, but if you just want to put sales tax to the default you can choose that option too.

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