QuickBooks Online and Sales Tax
You can keep track of sales tax (like GST in Australia or Canada) by publishing tax data from Hubdoc. To configure your tax settings:
Step 1: On the Destinations page of your Hubdoc account settings (where you initially connected to QBO), you will see an awesome little check box that says Publish Tax Data. Check that box! You will only see this option if the QBO account you are connected to has available tax codes.
Step 2: Select your Default tax rate (e.g. GST, HST, or VAT). This is the one you use most frequently. Then select your Default tax exempt rate (e.g. exempt, GST Free, BAS Excluded). This is the tax free line that will be used most frequently.
See the screen cap below so you know where to find these settings.
Step 3: Start using our awesome tax functionality. But how?
Step 4: Close the Manage Accounts/Destinations screen and navigate to a bill or expense in Hubdoc. See the screenshot of the Sobeys bill below. Wow, the Hubdoc team drinks a lot of coffee.
Step 5: Hubdoc has extracted the date (April 18, 2016), the supplier (Sobeys) and the amount (101.00). It is up to you to figure out what to do with the tax. You can either select a tax rate to apply to the Total Amount or enter in the Extracted Amount. In this case, the tax is $2.88 which you will notice is not a flat 13% like most transactions in Ontario. So instead of just selecting the tax rate, we have selected Extracted Amount and entered $2.88. Notice that Hubdoc calculates the Net Amount of $98.12.
Step 6: Publish to QBO. Code the Sobeys bill using Hubdoc supplier rules (instructions here) and then hit Publish. Watch the magic happen. Here is what the transaction looks like in QBO. Note that Hubdoc has created two line items in QBO to achieve the goal of getting the transaction to calculate $2.88 of tax paid.
Works like a charm!