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.
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 Private key and API URL from step 2. Select the options you’d like to configure and click Save changes.
- Go to WooCommerce > Settings > General and activate the option Enable tax rates and calculations. Click Save changes.
Go to WooCommerce > Settings > Tax > Tax options and set up your tax preferences. For the Calculate tax based on field, you might want to:
- Select Customer billing address when selling digital products.
- Select Customer shipping address when selling physical goods.
Click Save changes.
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 Country and Postal code fields 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 receipts in 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).
Finally, the configuration process is summarized in this video, check it out!