Quaderno takes care of all your tax calculations for WooCommerce, letting you know when taxes change or when you reach a tax registration threshold in any country, creating useful reports, and sending tax compliant invoices.
If you use our WooCommerce Quaderno Tax Automation plugin, please don’t connect your payment processor accounts (Stripe, PayPal, etc.) to Quaderno as it may cause duplicated invoices.
Follow these steps to connect one or many WooCommerce stores to a Quaderno account:
- Install our official plugin for WooCommerce.
- Go to the API keys page in your Quaderno account and copy your API credentials.
- Go to WooCommerce > Settings > Integrations > Quaderno and paste the
API URLfrom step 2. Select the options you’d like to configure and click
- Go to WooCommerce > Settings > General and activate the option
Enable tax rates and calculations. Click
Go to WooCommerce > Settings > Tax > Tax options and set up your tax preferences. For the
Calculate tax based onfield, you might want to:
Customer billing addresswhen selling digital products.
Customer shipping addresswhen selling physical goods.
For taxes to be displayed correctly on your checkout and invoices, configure all tax jurisdictions where your business is registered for tax collection.
Make sure your checkout form fields collect at least the
Postal codefields for correct tax calculations. For tax compliant invoices, the whole address would be needed, as well as the tax id for B2B sales.
That’s it! With this basic configuration, Quaderno will generate an invoice or credit note for any WooCommerce sale or refund, when the order is marked as paid or completed in WooCommerce.
Let’s now review a few advanced options you might need to configure depending on your case:
- First, we'd recommend sending your customers the Quaderno's tax-compliant invoices instead of the WooCommerce ones. You can enable this with the option
Autosend receiptsin WooCommerce > Settings > Integrations > Quaderno. Note that Quaderno also offers a useful billing dashboard for your customers.
- When selling with tax-inclusive pricing (meaning your final price include taxes), follow these steps to delete all tax rates in WooCommerce except for the rate in your own jurisdiction. WooCommerce will use the standard rate in your jurisdiction to calculate taxable bases.
- In some cases like ticket sales to in-person events or pick-up orders (never on shipped orders or digital products), you might need tax to be calculated based on the store location where the product is purchased, rather than the customer's location. To do that, in WooCommerce > Settings > Tax, select
Calculate tax based on - Shop base address.
- You can also ignore all tax rates and locations with going to WooCommerce > Settings > Integrations > Quaderno and selecting the option
Force universal pricing. Please consult your tax accountant before doing this.
There are also a few known limitations:
- Only one tax rate per product is supported in WooCommerce. This would be a problem for applying both GST and QST on Canada.
- For recurring payments, only "simple subscriptions" are supported ("variable subscriptions" are unsupported).
- The WooCommerce API does not provide information about the point of exit of the goods, therefore our plugin cannot support the case where orders ship from different locations.
Finally, the configuration process is summarized in this video, check it out!