Sales Tax

Teapplix requires that you turn on Sales Tax in your company file, and create at least one sales tax item with none zero tax rate. Even if you don't charge sales tax, create a sales tax item with non-zero rate anyway.  Otherwise, no orders will be exported.

It is important that you setup the tax item to have the correct tax rate for both state and local tax. Because Teapplix by default uses QuickBooks to calculate the tax amount, if your tax rate is wrong your order total will not match that from the order.

When Teapplix exports an order, the "tax" line on the sales receipt or invoice will always show the tax item that you have setup on QuickBooks->Integration Setup page or Quickbooks->Tax Mapping page.

For an order where tax is charged and you need to remit the tax, Teapplix will mark the "Customer taxable" bit to "tax". QuickBooks will then compute sales tax.

For an order that no tax is charged or you don't need to remit the tax, Teapplix will mark the "Customer taxable" bit to "non".  QuickBooks will keep tax amount to zero.

Note: Now many marketplaces are auto collecting and remitting taxes to 40+ States in US.  For the orders in those States, Teapplix will ignore the tax charged and mark the "Customer taxable" bit to "non", so QuickBooks will keep tax amount to zero.

1. QuickBooks items created by Teapplix automatically are non-taxable.  You can edit the item taxable status in QuickBooks afterwards, or create the item in QuickBooks first and not let Teapplix create it.

2. Customers created by Teapplix: Customer taxable bit is specific to a sales receipt. You can change it and not affect other sales receipts. Teapplix marks customer as taxable when the sales has a non-zero tax amount.  Otherwise the customer is marked non-taxable.

3. If you create any "discount items" in QuickBooks to keep track of fees, it is important that These items are setup as "Non taxable", so the fee amounts do not change the sales tax calculations.

Tax Mapping for Each State

If you have sales taxes for multiple states,  we now allow you to use different tax items for each State and each Country. You can set it up on the QuickBooks->Tax Mapping page. Teapplix currently can not handle different taxes on the county or city level. You need to manually fix sales receipts after export in this case.

If you only want to apply a sales tax item with none zero tax rate to orders of certain States, and for rest of orders apply the out-of-state tax item, you can enter the out-of-state tax item on the QuickBooks->Integration Setup page (which will be used by default), and create Tax Mapping for each State you want to apply different tax items.

Sales Tax as a line item

If you choose to charge multiple sales tax rate within your state, you cannot use QuickBooks to compute the tax, instead, you will enter the sales tax as an line item on the Sales Receipt or Invoice.

Or if you would like to record the exact tax amount changed by the marketplace, instead of having QuickBooks to calculate the tax,  you can also choose to enter the sales tax as an line item.

To select this mode, please contact our support team so they can customize your account and set "Enter sales tax as an line item"  for QuickBooks integration setup.

Under this mode you need to setup the following in your QuickBooks:

  1. A sales tax item or group with 0% tax rate.  It will be used at the bottom of the sales receipt. QuickBooks typically recommends that you create a tax item named "Tax Calculated On Sales Receipt" so that it's clear that the tax is not being applied by QuickBooks on the invoice or sales receipt.
  2. The sales tax item (we cannot use tax item group) to use to record the actual tax amount as an line item on the sales receipt or invoice. And select this tax item on Teapplix Integration Setup page.