Troubleshooting Sales Tax Discrepancies in Shopify-NetSuite - Webgility Desktop
This article helps Webgility Desktop users in solving issues where sales tax data imported from Shopify to NetSuite via Webgility Desktop appears incorrect, such as showing taxes for out-of-state locations despite Shopify forwarding taxes only for specific states (e.g., California). The guide provides steps to identify and fix tax mapping errors to ensure accurate tax reporting.
When integrating Shopify with NetSuite through Webgility, sales tax data may sometimes be incorrectly imported, leading to taxes appearing for out of state even if the Shopify only forwards taxes for specific states (e.g., only California). This article will guide you on how to rectify it.
1. Confirm Shopify Tax Collection Settings
- Log in to Shopify as an Admin user.
- Navigate to Settings > Taxes and duties.
- Verify which Regions are set up for tax collection.
2. Check Webgility Tax Mapping Settings
- Log in to Webgility.
- Go to Connections >> Accounting >> Sync Settings >> Sales Tax.
- Verify the Selected Sales Tax settings, also check the NetSuite connection.
3. Review and Adjust NetSuite Tax Codes
- In NetSuite, navigate to Setup > Accounting > Tax Codes.
- Confirm that only taxes sent by Webgility (matching Shopify) are being applied to transactions.
- Remove or adjust mappings for states not expected to collect tax.
- If any changes were made in NetSuite make sure to download the NetSuite latest data in Webgility under Get Latest Data & Settings.
4. Sync Orders to Test.
- Once Sales Tax Settings have been verified on NetSuite & Webgility, try posting an order manually from the New Orders Tab and verify the same in QuickBooks.
- Confirm tax is calculated only for appropriate states.