Stripe Tax

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To make the most of Acodei and streamline your sales tax accounting, enable the Stripe Tax feature, which is available in the paid plans. With Stripe Tax enabled on your Stripe account, Acodei will automatically capture the calculated tax and report the tax amount to QuickBooks under the designated liability account. Line item tax rate mapping is not available presently.

This feature is still in beta as we improve tax tracking, particularly for non-US clients. Please do not hesitate to message us with any feedback or ideas for improved implementation.

How to Enable Stripe Tax

To activate this premium feature of Acodei, follow these instructions:

  1. Go to your Acodei Dashboard and navigate to the Account Mapping module
  2. Scroll down to the Premium Features section
  3. Click on Show, next to Stripe Tax (BETA)
  4. Scroll further down to the Stripe Tax (BETA) section, which is now enabled, and select Yes
  5. Select the tax product from the dropdown list
  6. Click on the blue Submit Changes button at the bottom to save it

You can see this process below:

Stripe Tax Setup

First, ensure all taxes you wish to track are set up in Stripe. You can use Stripe Tax for automatic tax rates or manually set up tax rates within Stripe. Once tax tracking is enabled, link it to a product associated with the liability account where you want to record your sales tax payable in QuickBooks.

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Non-US Companies

Currently, companies based outside of the United States will have their tax rate automatically set to Exempt. Refer to the notes below on how QuickBooks currently handles VAT. Please message us if you would like to try tracking with other tax rates.

Manual Stripe Tax Rate Setup

If you prefer manual tax rate management rather than the automatic mode, follow these instructions:

  1. Go to your Stripe Product Catalog.
  2. Create a new tax rate. Detailed instructions can be found in Stripe's documentation.
  3. Apply this rate to your transactions (invoices, payment links, checkout sessions, subscriptions, etc.).
  4. Acodei will record the tax collected in the specified liability account.

Issues with QuickBooks for GST/VAT Collection

We've noticed challenges for VAT-collecting users due to QuickBooks not processing inclusive tax rates as expected via their API. This poses an issue for non-US companies aiming to report transactions with inclusive tax.

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Example

Intending to record a $200 transaction as $166.67 in sales and $33.33 in VAT. Instead, transactions are logged as exclusive of tax, complicating the accounting process.

Please refer to the Intuit troubleshooting pages provided for detailed discussions on the issue:

We have contacted the QuickBooks API team to address this issue and hope to find a resolution soon. In the meantime, we strongly recommend utilizing Stripe Tax functionality to accurately track and manage your tax liabilities through Acodei.

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BETA Phase

We appreciate your patience as we work through these challenges during the BETA Phase and strive to offer you the best service possible.

Updated 4 months ago