What do I need to know using Sync with Square and GST?

Note: This topic applies to you if you're using Sync with Square. Learn more about Sync with Square

What is the Square Setting labelled Default GST tax name and rate?

When transactions are imported from Square, Sync with Square tries to match the Square tax rates from each line of the transaction to a tax code in your QuickBooks online GST Centre. If no match is found (based on the tax rates and their names), then Sync with Square assigns the tax code that you set up for Default GST tax name and rate on the Defaults for Unmatched Items page in your Square settings. This tax is set to the Australian GST tax of 10% by default, unless you set up a different default rate.

What is the default GST used for Sync with Square in Australia?

By default, in Australia, Sync with Square attempts to use the default tax that is used in the Square invoice. In the event that the tax code can’t be found, that is, in case the tax code in a Square invoice fails to match one in QuickBooks, Sync with Square will use the default tax code that’s set up on the Defaults for Unmatched Items page in your Square settings. This tax is set to the Australian GST tax of 10% by default.

When I look at my QuickBooks Online GST Centre, I see Unassigned Tax Agency for Apps. What is this?

If you want, you can set up Sync with Square to separate unmatched GST information under a custom tax agency called Unassigned Tax Agency for Apps. GST information is considered unmatched when the tax rate information from Square cannot find a match to an appropriate tax code in QuickBooks online.

After importing a transaction from Square, I see one or more lines referencing the tax code configured in the app settings (for example, Unassigned Tax from Square Sales) even though it doesn't match Square. Why is this?

There might be a couple of possible reasons for this mismatch: Either the tax rates used in Square don’t match those in your QuickBooks online GST Centre or the combination of tax rates used in Square do not match the components of a tax code in your QuickBooks online GST Centre.

How can I see a summary view of all transactions which have unmatched GST items?

You can view this if you've selected the Unassigned Tax from Square GST option. If so, go to GST > Unassigned Tax Agency for Apps > Run Reports > Detail. From here, you can see all affected transactions and click on them to open the edit form. You can then manually fix incorrect mappings by selecting the appropriate tax code and saving the transaction.

How can I set up my Square and QuickBooks Online tax rates and tax codes to improve the likelihood of successful tax rate matching?

The best match is when the tax rate names and percentages in the QuickBooks online tax code exactly matches the Square tax rate names and percentages. The matching algorithm in the app tries to first compare the tax rate between the rate from a Square invoice and the one present in QuickBooks. If a match is found, all is good, and the import process continues by using the matched rate. Otherwise, the tax name (for example, GST) is compared between the Square invoice and what is in QuickBooks. So, in order to improve the likelihood of successful tax rate matching, make sure that the tax name (the default is GST) or rate (the default is 10%) is the same between QuickBooks and the Square invoices.

See also

Working with sales tax in Square and QuickBooks Online