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.

Overview

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.

Where the fields appear in QuickBooks Online

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 QuickBooks Online 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

Importing Multiple Taxes

If you need to import transactions with Multiple Tax rates for State, Province or City tax rates then use a Group Sales Tax code when importing

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 QuickBooks and adjust the Tax Code and retry the import.

Error: Business Validation Error: Make sure all your transactions have a GST rate before you save. - This error occurs when QuickBooks is unable to recognize the Tax Code (LineSalesItemTaxCodeRefValue) or the corresponding rate that you have provided and the field GlobalTaxCalculation, please check that you have mapped the TaxCode field and provided a relevant name that matches what you have in QuickBooks, and also mapped the field GlobalTaxCalculation.

Article ID: 262, Created: 7/30/2014 at 5:26 AM, Modified: 8/16/2024 at 4:45 AM