Configure your QuickBooks Account

To enable Galvix to accurately calculate sales taxes and ensure compliance, you must configure your QuickBooks account to collect sales tax and correctly reflect the taxability of customers. This guide provides clear steps to enable sales taxes and mark customer taxability rules in QuickBooks.


What can this guide help with?



Enable Sales Tax in QuickBooks


Sales tax must be enabled in QuickBooks in order to allow both QuickBooks and Galvix to be able to suggest tax related fields.


Steps to Enable Sales Tax:

  1. In QuickBooks, go to Taxes > Sales Tax (from the left navigation)
  2. Click on Sales Tax Settings
  3. Click on Turn on sales tax

This will ensure that QuickBooks is enabled to allow sales tax to be calculated and added to transactions.


If you see Turn off sales tax on this page in your QuickBooks account, it means that sales tax is already enabled. And no action is needed.


Disable Existing Tax Agencies


When Sales Tax is On in QuickBooks, it would mean that QuickBooks is using its engine to calculate sales tax on all transactions created within it. You can delegate the sales tax handling to Galvix by disabling the Tax Agencies in QuickBooks that are used for determining the taxes.


Steps to Disable Tax Agencies:

  1. In the QuickBooks app, go to Taxes (from the left navigation).
  2. Click on Sales tax.
  3. Go to Sales tax settings.
  4. Click on Make Inactive for each of the Tax agencies.

This disables Quickbooks from calculating the Taxes and provided the toggle for Tax determination was turned on during the integration setup in Galvix, Galvix will take over the tax calculations on QuickBooks transactions.


Set Up Customer Taxability and Exemptions


Galvix relies on the Tax Preference setting in QuickBooks to determine whether a customer is taxable or exempt. By default, customers should be marked as taxable unless they provide a valid exemption certificate (e.g., for government entities, schools, or nonprofits). Review all existing customers in QuickBooks to ensure accurate settings.


Taxable Customers

To review the taxability for a customer or to create a new customer with taxable preference, follow these steps -

  1. Navigate to Sales → Customers in your QuickBooks account
  2. Create a new customer or edit an existing one
  3. Under Additional info, uncheck This customer is tax exempt
  4. Save the changes

Galvix will apply this tax preference to ensure the correct sales tax is charged to the customer’s transactions.


Handling Tax Exemptions

Sales tax exemptions are a criteria that allow customers not to pay sales tax. Often, these customers are government entities, schools, or non-profit organizations. The customer must provide a valid exemption certificate confirming their status. If you have such customers who are exempt from sales tax, you must update their taxability status to 'Tax Exempt' in QuickBooks.


To review the taxability for a customer or to create a new customer with 'Tax Exempt' preference, follow these steps -

  1. Navigate to Sales → Customers in your QuickBooks account
  2. Create a new customer or edit an existing one
  3. Under Additional info, check This customer is tax exempt
  4. Select appropriate Reason for exemption
  5. Save the changes

Galvix will apply zero sales tax to transactions for exempted customers.


Calculate taxes on Shipping


To allow Galvix to determine and calculate taxes on Shipping related costs, you will need to create a service item in QuickBooks as they have a system limitation preventing tax calculations on shipping fees by default (reference article). Also, shipping will be required to be added as a line item in to your invoices.


  1. Disable Default Shipping in QBO:

  • Go to Settings > Account and Settings > Sales > Sales Form Content
  • Under Shipping, turn off the radio button to disable QuickBooks’ default shipping feature


  1. Add Shipping as a Taxable Service Item:

  • In QuickBooks, create a new Service item named “Shipping” (under Products/Services).

  1. Assign relevant tax category to Shipping in Galvix

For Galvix to determine correct tax rates based of taxability rules for your Shipping method, it is important to accurately map the tax category for the item in Galvix.

  • In Galvix, go to the Products section
  • Search for the Shipping item using the name used when creating the Product in QuickBooks
  • Click on the item to update the tax category
  • Click on Update Tax Category
  • Under Tax Category, select the most appropriate shipping tax category
  • Click Save

  1. During invoice creation, add this item as a line item with the shipping amount.


Testing an invoice in QuickBooks for tax determination


Once you have completed connecting QuickBooks to your Galvix account and configured your QuickBooks account as per the steps suggested above, we suggest Issuing a test invoice or credit note in QuickBooks to test tax determination and ensure everything is working as expected.


Steps to Test an Invoice:

  1. In QuickBooks , go to Sales > Invoices.
  2. Click Create Invoice to create a new invoice.
  3. Under Customer, select an existing customer or add a new one.
  4. Set the Invoice Date.
  5. In the Product/Service Table, select an existing product/service or add a new one.
  6. Add Shipping 'as a line item' if applicable.

Ensure your products and shipping charges are assigned to the correct tax categories in Galvix! Follow this guide to verify and set them up accurately.

  1. Click Save and Close to allow Galvix to calculate taxes.
  2. Wait for a few seconds for Galvix to add taxes to the draft invoice. Refresh the preview page to view the updated tax amount.

  1. Once taxes appear correctly, you may print or send the invoice.
  2. Once finalized (invoice status in QuickBooks is updated), the transaction will sync into Galvix and appear under the Transactions tab.

⚠️You may Void or Delete the test invoice to avoid tax implications.

⚠️ Note: Galvix does not sync transactions that are in draft status. Only finalized transactions are reflected and considered in return calculations.


With these configurations, Galvix can accurately calculate sales taxes, generate return drafts, and keep your business sales tax compliant effortlessly!


Next Steps


Review our documentation on Best practices for invoicing in QuickBooks

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