MyWorks makes it as easy as possible to handle accounting for the sales tax collected in WooCommerce orders we sync to Xero.

MyWorks is compatible with automated sales tax tools in WooCommerc  - commonly used in the US; as well as manual tax rates configured in WooCommerce for any non-US country, like Canada, Australia, New Zealand, and any other country. 

We support two different approaches to syncing tax into orders in QuickBooks, based on your tax setup: syncing tax as a line item - or, mapping individual tax rates to QuickBooks. These are managed in two areas:

• MyWorks Sync > Settings > Tax: where you'll set a 0% tax rate to be used for any non-taxable WooCommerce orders.
• MyWorks Sync > Map > Tax Rates: where you'll map your WooCommerce tax rates to corresponding Xero tax rates.  

Mapping tax rates

This approach is most commonly used outside of the US - in countries like Canada or the United Kingdom, where specific tax rates are set in WooCommerce - like 5% GST, or 20% VAT. 

To map your tax rates together, first ensure your corresponding sales tax rates are enabled in your QuickBooks Online company: in the Tax > Sales Tax (or VAT) menu. 

Then, visit MyWorks Sync > Map > Tax Rates in your WooCommerce admin area, where you'll see your enabled WooCommerce tax rates on the left, and a dropdown of your QuickBooks Sales Tax Items on the right. Simply choose the matching QuickBooks tax rate that corresponds to the WooCommerce tax rate for each row. 

MyWorks does support multiple tax rates in a WooCommerce order - for example GST + PST in Canada. Use the Compound Tax Mapping option in MyWorks, which allows you to map two WooCommerce tax rates to a single combined tax rate in QuickBooks, since QuickBooks allows only one sales tax item per order. 

Syncing as a line item

This approach is most commonly used in the US, if you have Automated Sales Tax configured in WooCommerce to charge many different tax rates in different states or counties through the US. To avoid having to create each of these tax rates in Xero and map them separately, MyWorks can sync the sales tax collected as a line item into Xero so Xero still accurately tracks the total tax collected. WooCommerce tax reports can then also be used to pull the detail of sales tax collected for different states/counties.  

To enable this setting, simply visit MyWorks Sync > Settings > Tax and enable the setting to sync sales tax as a line item. Then, set both sales tax options below it, following the instructions for each setting. 

Once enabled, the Sales Tax collected in the WooCommerce order will be passed into a line item in each order synced in Xero.