Introducing country sales tax: add country-specific tax to your orders (and Xero invoices)
Post by Expandly on 21st April 2020
You asked for it and we’ve delivered. Out latest Expandly product update includes country-specific sales tax.
This enables you to apply specific sales taxes to order originating from different countries – great for keeping on top of your tax obligations and even better for automatically updating Xero with the correct tax rates.
How is sales tax applied in Expandly?
Before you delve into country sales tax on Expandly (we know it’s a thrilling topic), let’s first look at how sale tax is applied in Expandly.
Orders that come into Expandly are treated as gross (inclusive of sales tax).
There are four different ways to apply the correct tax to these orders, applied in sequential order.
This applies a tax rate to all orders from a certain country, for example, 20% for the UK.
This applies a tax rate to certain products or variations, for example, 0% for children’s clothing.
3.Tax from your sales channel
This applies the tax imported from your sales channel.
4.Global setting for your sales channel
This applies a global sales channel tax setting when a sales channel doesn’t import a tax (e.g. Amazon and eBay).
As mentioned, these tax settings are applied in sequential order. When an order comes into Expandly, Expandly checks for each setting in turn and applies the first setting that the order meets the criteria for.
The only exception to this is if you allow product settings to override a country setting. For example, you may wish to override the UK 20% tax on children’s clothing products.
What are the benefits of using Expandly’s country product tax settings?
Mainly time and accuracy. Managing sales taxes when selling internationally can be challenging.
Sure, you can use Expandly and Xero’s tracking categories to quickly apply international sales taxes, but this is an easier way.
By setting up country-specific taxes in Expandly, you ensure that orders are marked with the right sales tax automatically.
This removes the need to edit invoices in Xero and gives you confidence that you’re figures are correct.
How to create tax setting in Expandly
Now to the easy part. To create and manage sales tax in Expandly, head to Configuration > Order Settings > Manage Sales Taxes and click Add New Tax to begin creating your tax.
You can find more detailed guidance in our user guide and video guide.
We hope you enjoy using this product update.
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Expandly is a eCommerce platform that allows online seller and their accountants to manage multiple sales channels and orders from one simple dashboard.
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