How is Tax Calculated
US Companies
For US QuickBooks Online companies fmAccounting Link (QuickBooks Online Edition) uses the Automated sales tax feature of QuickBooks Online to have QuickBooks calculate the sales tax when new transactions (Invoices, Estimates, PurchaseOrders and Bills) are uploaded. If the transaction was successfully uploaded to QuickBooks Online details about the total tax amount will be returned in the response and fmAccounting Link will update the Tax Amount field with the value returned from QuickBooks. When entering line items for a transaction you will be able to select the taxable status via the Tax checkbox shown here:
fmAccounting Link looks for the presence of the:
Preferences.TaxPrefs.PartnerTaxEnabled
attribute which is returned when clicking the Import Preferences button on the Preferences tab on the Company screen shown below:
When this attribute is true/checked the QuickBooks Online company uses automated sales tax. You can get more information about working with tax in US locales at the following QuickBooks websites:
Manage sales tax for US locales
Set up and use automated sales tax in QuickBooks Online
Using QuickBooks Online API for automated sales tax
Non-US Companies
For Non-US QuickBooks Online companies when entering line items for a transaction (Invoices, Estimates, PurchaseOrders and Bills) you can select the Tax Code to use for each line item so QuickBooks Online knows the tax rate to use when calculating taxes using the Tax field shown here:
The Tax code value will default to the appropriate Tax Code for the selected Product (set against the Product for sales and purchases) but can be overridden on a line item basis. Always make sure you have first downloaded the list of Tax Rates and Tax Codes from the Setup tab on the Company screen.
fmAccounting Link doesn't calculate any tax amounts but rather uses the tax amount value returned by QuickBooks Online when uploading transactions. If the transaction was successfully uploaded to QuickBooks Online details about the total tax amount will be returned in the response and fmAccounting Link will update the Tax Amount field with the value returned from QuickBooks. You can get more information about working with tax in Non-US locales at the following QuickBooks websites: