How to import GST or VAT on transactions into QuickBooks Online

Note: The information in this article should not be treated as Tax Advice we recommend that you consult a qualified tax practitioner.
 
With  the Zed Axis import utility you can import Goods and Services Tax (GST) or Value Added Tax (VAT) on transactions into QuickBooks Online. This article specifically relates to Canadian, UK, Australian or other Non-US editions of QuickBooks Online for guidelines importing US Sales Tax please refer to this article.
 
 

Map relevant Tax Codes and let QuickBooks calculate the Tax Amounts (Recommended)
  • At the header level - GlobalTaxCalculation - Select whether the amounts are TaxInclusive, TaxExcluded or NotApplicable
  • At the line level - LineSalesItemTaxCodeRef - this is the name of Line Tax Code (ie Exempt, GST, 20.0% S, etc)
Once the Line Tax Codes have been set and the GlobalTaxCalculation and the data has been imported then QuickBooks will calculate the corresponding Tax Amounts for the transaction. Note at time of writing this article if you want to import amounts that include tax you will need to set the option to Convert Gross Amounts to Net.  This is a workaround we provide to address a bug in the QBO interface.

UK Vat Codes (QuickBooks Online default)

Line Tax Code Sales Purchase  Description
20.0% S Yes Yes Standard sales or purchases at 20%
5.0% R Yes Yes Reduced sales or purchases at 5%
0.0% Z Yes Yes Zero-rated sale or purchase
Exempt  Yes Yes Exempt from VAT
20.0% ECG No Yes EC Standard Goods purchase at 20%
20.0% ECS No Yes EC Standard Service purchase at 20%
0.0% ECG Yes Yes EC Zero-rated Goods sale or purchase
0.0% ECS Yes Yes EC Zero-rated Service sale or purchase
 

Canadian GST/HST Codes (QuickBooks Online default)

Line Tax Code Sales Purchase  Description
GST Yes Yes Federal goods and service tax
Zero-rated Yes Yes Zero rated sales or purchases
Exempt Yes Yes Exempt sales or purchases
 

Australian GST Codes (QuickBooks Online default)

Line Tax Code Sales Purchase  Description
GST Yes No GST on sales at 10%
GST free Yes No GST free sales at 0%
GST free exports Yes No GST free export sales at 0%
GST on capital No Yes GST on capital purhases at 10%
GST on non-capital No Yes GST on non-capital purchases at 10%
GST-free capital No Yes GST free capital purchases at 0%
GST-free non-capital No Yes GSt free non-capital purchases at 0%
Input tax Yes Yes Input taxed on sales or puchases
 
 
Troubleshooting Error message:
 
Error: Business Validation Error: We're sorry, QuickBooks encountered an error while calculating tax. Try reselecting the tax rate or reentering the product/service item and saving the form again - This error occurs when QuickBooks was unable to calculate the Tax on the transaction based on the information provided in the import message.  Typically that may be as the Tax Code specified is not applicable to the transaction being imported, such as only used on Sales Transactions or only on Purchase type transactions, ie 20.0% ECG is only permitted on Purchase Transactions.  Please check the Tax Rates and settings in QBO and adjust the Tax Code and retry the import.
 
 

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