Setting up taxes

As an online seller, you might need to charge taxes on your sales, and then report and remit those taxes to different tax agencies on different tax jurisdictions, where you might need to register your business for tax collection first.

Quaderno doesn’t file or remit your sales taxes for you, but we’ll notify you when you are approaching a threshold in a jurisdiction and when you reached it, as well as automatically handle your sales tax calculations.

Follow these steps to set up your taxes configuration:

  1. Billing address: Go to the addresses page and set up your billing address. Quaderno requires this information to calculate your tax liability.
  2. Default tax and product type: Go to the preferences page and set up your default tax code and default product type. They’ll be used to calculate your tax rates in cases where they’re not specified on a transaction.
  3. Jurisdictions: Go to the jurisdictions page and set up the tax jurisdictions where your business is registered for sales tax collection.

    For Europe taxes, you might want to check our EU OSS / IOSS use cases and setup guide.

Note that we allow to override any tax rates where necessary. However, we recommend using this option only if you need to address unique laws or exceptions. This is usually not needed, as we cover most taxes worldwide. Don’t hesitate to drop us a line and our tax maniacs will help you with that edge case!

You should always check with a local tax authority or a tax accountant to make sure that you charge your customers the correct sales tax rates, and to make sure you file and remit the taxes correctly.

Common questions

  • I have added a US state as a jurisdiction. Will Quaderno still calculate the city, district, or country tax in that state?

    Yes, when you add a US state as a jurisdiction, Quaderno will calculate the state tax and any city, district, or county taxes on your sales in that state. On your invoices, you will see the sum of all local and state taxes, and you'll see the full breakdown by local jurisdiction in your US sales tax report.

  • I am registered in the EU OSS / IOSS scheme. Is this considered a jurisdiction?

    Yes, if you are registered in the European Union OSS or IOSS scheme, just add the jurisdiction European Union - OSS / IOSS. Adding it will enable the EU VAT OSS report.

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