Setting up taxes

Although tax laws and regulations are complex and can change often, you can set up Quaderno to automatically handle most common sales tax calculations.

Quaderno uses many default sales tax rates, which are updated regularly. If you use the default rates, we recommend checking with your account to confirm they are applicable in your specific situation. You can override them whenever necessary.

Configuring your taxes

Follow these steps to set up your taxes configuration:

  1. Billing address: Go to the addresses page and set up your billing address. This is a mandatory step. 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 class and default product type. This is also a mandatory step. We'll use the tax class and product type to calculate your tax rates in case you don't set an explicit tax class or product type 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. A tax jurisdiction is an area subject to its own tax regulations. Read more in our glossary.
  4. Optional: override tax rates where necessary. We recommend using this option only if you need to override a particular tax rate to address unique laws or situations.

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. You'll find more information on this here.

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

    Yes, in Quaderno this scheme is considered one jurisdiction. If you are registered in the OSS or IOSS scheme, you can add the jurisdiction European Union - OSS / IOSS.

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