Tax & VAT
Xaldro posts the tax Webflow charged, under a tax code from your own Xero or QuickBooks, so the tax on each invoice is the tax the customer paid and it reports under the code you chose.
How Xaldro posts tax
Webflow either adds tax on top of your prices at checkout, or shows prices with the tax already included (usual for EU consumer stores). Either way it records the tax it charged on the order. Xaldro tells the two apart from the order's own amounts: when the lines add up to what the customer paid, the tax is inside the prices.
Xero
- Each line carries your mapped tax code and a stated tax amount: Xaldro splits the order's tax over the lines in proportion to their amounts, so the lines add up to exactly the tax Webflow charged, rather than Xero rounding the tax line by line.
- Tax added on top: the invoice is set to "tax exclusive" and the lines carry your prices.
- Tax included in the prices: the invoice is set to "tax inclusive" and the lines carry the prices as charged, so the invoice total is what the customer paid.
- An order without tax is posted as "no tax", so a default rate in your Xero organisation cannot add tax the customer never paid.
QuickBooks outside the US (UK, Canada, Australia and others)
- Each line carries your mapped tax code, and Xaldro states the order's total tax on the invoice.
- Tax included in the prices: Xaldro converts the lines to amounts excluding tax that add up exactly to the total minus the tax. A line whose new amount does not split evenly over its quantity becomes one line, for example "3 x Mug".
QuickBooks in the US (automated sales tax)
- Xaldro marks each line taxable or not, and states the tax amount on the invoice together with the state or agency tax code you mapped, which QuickBooks then keeps. Settings only offers state or agency codes there.
- An untaxed order is posted with every line non-taxable, so QuickBooks does not add tax the customer did not pay.
In every case Xaldro never invents a rate. It only applies a code you mapped. If an order charges tax and no code applies to it, the order is held rather than posted with the tax dropped.
Default tax rate
In Settings, map a default sales tax rate per accounting system, picked from your Xero tax rates or QuickBooks tax codes. Xero only lists active rates that can be used on sales. The default applies to every taxed order unless a region rule matches.
If your store charges no tax, leave it unset. If it does charge tax and you leave it unset, taxed orders are held with a message telling you to set a rate.
Per-region tax rates
Selling into more than one jurisdiction? Add region rules in the same Settings panel. Each rule maps a destination to a tax code:
- a country (two-letter code, for example
GB,US), and - optionally a region or state (for example
CA).
The destination is the order's shipping address, or its billing address when there is no shipping address. Xaldro picks the most specific match:
- exact country + region, then
- country-wide, then
- the default rate.
So you might map GB to 20% VAT, US + CA to California sales tax, and let everything else use the default.
EU VAT and OSS
Under the EU One-Stop-Shop (OSS) scheme a seller charges the destination country's VAT rate. Xaldro handles this through region rules: you map each EU destination country to that country's VAT tax code in Xero or QuickBooks.
The region-rules panel in Settings has an EU VAT (OSS) rates list of EU countries and their standard rates. Click a country to fill it in, then pick your ledger's matching VAT code. Set one rule per EU country you sell to.
The rates in that list are a reference and can change. Your ledger's tax codes are what Xaldro posts with.
US sales tax
Webflow calculates US sales tax at checkout. Xaldro posts that tax under the code you mapped; it does not recalculate rates. Map each state you charge tax in to the matching Xero or QuickBooks code with a region rule, and leave the default for everything else.
Zero-rated and tax-free orders
In Xero, and in a US QuickBooks company, an order with no tax posts with no tax code needed.
QuickBooks outside the US needs a VAT or GST code on every line, also on an order that carries no tax. Settings then shows VAT code for orders without tax: choose the 0% code that fits your sales, for example zero-rated, exempt or no VAT, as your accountant advises. Which one you pick decides where these sales land on your VAT return, so Xaldro never chooses it for you: until it is set, orders without tax are held with a message saying so.
When the tax does not match
After posting, Xaldro reads the invoice back. If its tax (or its total) differs from what the customer paid by more than 1 cent, Xaldro voids the invoice and holds the order. The usual cause is a mapped code whose rate is not the rate the order was taxed at (for example the order was taxed at 20% and the mapped code is 21%). Xero or QuickBooks may also refuse such an invoice outright; the order is then held with their message.
Open the held order to read the message, map the code that matches the order's rate, and press Retry. See Hold reasons.
What Xaldro does not do
Xaldro posts the tax Webflow charged under the codes you map. It is not a VAT or sales tax filing service: it does not track OSS thresholds, decide where you are liable, or submit returns.