MyWorks makes it as easy as possible to handle accounting for the sales tax collected in WooCommerce orders from the United Kingdom. We'll automatically sync the tax charged on the order into Xero as we sync the order: all that's needed is mapping your UK VAT tax rate(s) in WooCommerce to their corresponding tax rates in your Xero.

Setting up sales tax for UK

If your Xero company locale is in the UK, you'd manage your UK VAT in Xero in your Tax > Sales Tax tab. 

MyWorks allows you to easily map your WooCommerce sales tax rates to the sales tax rates present in your Xero company. There are two areas in MyWorks to manage this. 

Settings > Tax

In MyWorks Sync > Settings > Tax, you can set your Xero tax rate that should be applied to items that are not taxed in your WooCommerce orders. This is typically a tax rate named “Tax Exempt”.

Map > Tax Rates

In MyWorks Sync > Map > Tax Rates, you can view your WooCommerce tax rates and select the matching Xero tax rate for each.  

• The 20% VAT rate for the UK can be mapped to its corresponding 20% rate in Xero- usually named “20% S”. 
• Any additional territory where you charge separate/additional tax in WooCommerce can be mapped accordingly to another rate in Xero. This is less common to see. 

Syncing tax as a line item

Alternatively, if you do not wish to use the sales tax area in Xero,  and/or have sales tax turned off in Xero, you can sync tax as a line item in the Xero order instead.

You can enable the setting to sync sales tax as a line item in MyWorks Sync > Settings > Tax. This will cause the Sales Tax collected in the WooCommerce order to be passed into a line item in Xero. This item can be created in your Xero and assigned to your "Sales Tax Payable" account.