Once the plugin is installed and connected, it adds tax to your transactions automatically. This article covers what you need in place, how to confirm it's working, and what happens on every save — including edits, voids, and refunds.

Once the plugin is installed and connected, it adds tax to your transactions automatically. This article covers what you need in place, how to confirm it's working, and what happens on every save — including edits, voids, and refunds.

**Before you start,** make sure you've completed:

1. **[Set up your TaxCloud account](https://support.taxcloud.com/en-us/articles/set-up-your-taxcloud-account-for-quickbooks-desktop-qPQgfTk5ES)** — connection, API key, and the states where you collect.
2. **[Install the TaxCloud QuickBooks Plugin](https://support.taxcloud.com/en-us/articles/install-the-taxcloud-quickbooks-plugin-9q9kyzkynC)** — including entering your API Key and Connection ID in the plugin and granting it access to your company file.

## What tax calculation needs

For the plugin to calculate and post tax on a transaction, all of these must be true:

* The plugin is **running** and connected.
* The customer's **Tax Code** is **Tax** (not **Non** — a **Non** customer is treated as exempt; see **[Mark a customer tax-exempt](https://support.taxcloud.com/en-us/articles/mark-a-customer-tax-exempt-in-quickbooks-desktop-zo7zb1LeKW)**).
* The invoice's **TAX** dropdown is set to **TaxCloud Tax**.
* The customer has a **real, complete ship-to (or bill-to) address**. TaxCloud calculates tax from the destination address; a missing or invalid address means it can't return a rate.
* Your **company file has a real address**. TaxCloud calculates from origin to destination, so your own company address is the ship-from origin. The plugin reads it from **Company → My Company** (the **Company Name & Address**, or the **Legal Name & Address** if that's blank), so it must be a complete US address.
* **Tax collection is enabled** for that destination state in TaxCloud (a state you haven't turned on returns $0 by design).
* The transaction has at least one line with a quantity and price, and at least one taxable line.

If tax doesn't appear, re-check the list above. The plugin's **Capture History** tab (in Settings) lists what it has captured; if a transaction isn't there, its skip reason is in the debug log — see **[Troubleshooting](https://support.taxcloud.com/en-us/articles/troubleshooting-the-taxcloud-quickbooks-plugin-aKbKmVr8SO)**.

## Run a test invoice

1. In QuickBooks, go to **Customers → Create Invoices**.
2. Pick a customer whose **Tax Code** is **Tax** and whose **Ship To** address is a real address in a state you've turned on.
3. Add at least one taxable line item.
4. At the bottom of the invoice, set the **TAX** dropdown to **TaxCloud Tax**. (The plugin creates this entry on its first sync — if it's missing, save once with any tax item and it'll appear.)
5. Click **Save & Close**.
6. Reopen the invoice from **Customers → Customer Center → Transactions**. You should see a **TaxCloud Sales Tax** line with the calculated amount. That means it's working.

![Invoice with the TAX dropdown set to TaxCloud Tax and a TaxCloud Sales Tax line](https://support.taxcloud.com/api/attachments.redirect?id=cc8c6349-6b90-44df-b7cc-224f755037c7 " =2404x1492")

:::info
QuickBooks doesn't always refresh the invoice in the window where you saved it. If you don't see the tax line right away, close it and reopen from the Customer Center — it's always there on the next open.
:::

## What happens on every save

When you save an invoice, the plugin does this automatically — there's no "Calculate Tax" button:

1. QuickBooks tells the plugin the invoice was saved.
2. The plugin reads the invoice (customer, ship-to address, line items).
3. It calls TaxCloud to calculate tax.
4. It writes a **TaxCloud Sales Tax** line back onto the invoice.
5. It records the invoice in TaxCloud for filing.

This usually takes a couple of seconds.

## Where the tax posts

The plugin adds tax as a **Service** item called **TaxCloud Sales Tax**, mapped to an **Other Current Liability** account called **TaxCloud Sales Tax Payable** (both created automatically on first use). Collected tax shows on your **Balance Sheet** under Current Liabilities, not as income.

When you remit tax to a state (or through TaxCloud's filing service), record it against that liability account. The plugin doesn't record remittances — that's a manual bookkeeping step.

## Editing, voiding, and deleting

* **Edit an invoice:** change a line and save again; the plugin updates the existing tax line in place (it won't add a second one).
* **Void an invoice:** the plugin sees the tax drop to zero and updates TaxCloud, so your filing total drops by that amount.
* **Delete an invoice:** prefer **Void** over **Delete**. A deleted invoice can't be seen on the next sync, so its recorded tax isn't automatically removed from TaxCloud. If you must delete one the plugin already recorded, contact support so we can reverse it.

## Sales receipts

A sales receipt is a sale plus payment in one document. The plugin records it in TaxCloud for filing immediately on save — there's no payment to wait for.

## Sales orders and estimates

Sales orders and estimates are **not** synced to TaxCloud — no tax is calculated or recorded on them. They're pre-sale documents (a quote, or an order you haven't invoiced yet), and tax isn't owed until they become an **invoice** or **sales receipt**. Convert the sales order or estimate to an invoice, and the plugin calculates and records tax at that point.

:::info
Sales orders exist only in QuickBooks Desktop **Premier** and **Enterprise** (not Pro). Estimates are available in all editions once you turn them on under **Edit → Preferences → Jobs & Estimates**.
:::

## Refunds and credit memos

To refund tax, issue a **Credit Memo** in QuickBooks (**Customers → Create Credit Memos/Refunds**) — that's how QuickBooks Desktop records refunds. It posts to TaxCloud as its own credit that reduces your total collected tax for the period.

* **Partial and repeat refunds all record.** Each credit memo is recorded independently, so multiple partial refunds against the same original sale all reduce your filing total correctly.
* **A refund shows as its own credit.** On the TaxCloud dashboard, a refund appears as a separate negative order — the original invoice still shows its full tax. Your filing totals are correct; TaxCloud just doesn't re-link the refund to the original invoice.
* For unusual cases (for example, reconciling a manually renumbered credit memo), contact support.



Calculating and capturing tax in QuickBooks Desktop

Updating to TaxCloud's new Shopify App (June 2024)

Shopify Order Import in TaxCloud

Shopify Reporting FAQ

Connecting TaxCloud to Shopify

How to Mark Customers Tax Exempt in Shopify

Keeping your TaxCloud and Shopify collection states in sync 

Shopify

Why do my TaxCloud orders have Fallback rates in BigCommerce?

Connecting TaxCloud to BigCommerce

Marking a Customer Exempt in BigCommerce

Upgrading from the Legacy BigCommerce Integration

BigCommerce

How to connect my Odoo store to TaxCloud

How to Connect my TaxCloud Account to Odoo Sale (Loyalty)

How To Connect my TaxCloud Account to Odoo Sale (Loyalty) - Delivery

How to Connect my TaxCloud Account to Odoo eCommerce

How to Connect my TaxCloud Account to Odoo Sale

How to Connect my TaxCloud Account to Odoo Amazon/TaxCloud Bridge

How to Connect my TaxCloud Account to Odoo TaxCloud & Subscriptions

Upgrading TaxCloud Modules in Odoo

Odoo

Connecting TaxCloud to WooCommerce

Enabling Exemptions In TaxCloud for WooCommerce

How to Configure WooCommerce Order Capture Behavior with TaxCloud

Understanding WooCommerce Integration Modes

How to Download Debug Logs in TaxCloud for WooCommerce

How to Enable Rate Limiting in TaxCloud for WooCommerce

WooCommerce

Troubleshooting QuickBooks Online Tax Calculation Errors

QuickBooks Online Integration: How to Resolve a Missing Account, Product Code, or Sales Tax Item Error

Managing your QuickBooks Online Product Catalog TICs in TaxCloud

How the QuickBooks Online Integration Works

How to Fix QuickBooks Online Line Items Showing No Tax (TIC 99992)

Preparing Your Invoice for Accurate Tax Calculation

Calculating Sales Tax on QuickBooks Online Invoices

Managing Invoices with Multiple Payments in Quickbooks (Real-Time Integration)

Calculating Sales Tax on QuickBooks Online Sales Receipts

Calculating Sales Tax on Estimates

Calculating Sales Tax on Credit Memos

Calculating Sales Tax on Refund Receipts

Managing Exempt Customers in TaxCloud for QuickBooks Online

Changing the Sales Tax Display Mode for QuickBooks Online

Connecting TaxCloud to QuickBooks Online

Reconnecting the QuickBooks Online integration after auth invalidation

QuickBooks Online

Connecting TaxCloud to Adobe Commerce or Magento

Marking Customers Exempt in Adobe Commerce

Adobe Commerce & Magento

Connecting TaxCloud to Chargebee

Chargebee

Connecting TaxCloud to Miva

Miva

Building a direct API integration with TaxCloud

Video: How to add or disable an integration

How to Add and Manage Integrations in TaxCloud

Reviewing and Submitting an Exemption Certificate

Building a custom API connection with TaxCloud

General Integrations

Connecting TaxCloud to Stripe

How to Mark Customers Tax Exempt in Stripe

Stripe

CSV Upload

Set up your TaxCloud account for QuickBooks Desktop

Install the TaxCloud QuickBooks Plugin

TaxCloud QuickBooks Plugin settings reference

Assign product tax codes (TICs) in QuickBooks Desktop

Mark a customer tax-exempt in QuickBooks Desktop

Troubleshooting the TaxCloud QuickBooks Plugin

Keeping the TaxCloud QuickBooks Plugin updated

Migrating to TaxCloud from Avalara or another tax tool (QuickBooks Desktop)

QuickBooks Desktop

Integrations

Getting Started

Account and Billing

Plans and Pricing

TaxCloud's APIs

General

Exemptions and Certificates

Support and Resources

State Notices and Licenses

Transactions and Reporting

Filing and Compliance

Tax Concepts

TaxCloud Onboarding Webinars

What is TaxCloud's Premium Trial?

How to Set Up and Manage Locations

How to Take Your Integration Live

Preparing For Onboarding

How to add/remove a contact from your TaxCloud account.

How to Update My New Business Address With The States?

Best Practices for your TaxCloud Account

Verify Your TaxCloud Account is Complete for Calculations

How to Enable & Disable Tax Collection in a State

How do I reset my Password?

Video: How to complete your TaxCloud Business Profile

How to Use Multi-Account Login

How to Close Your TaxCloud Account and Cancel Subscription

I have a new EIN. How does that impact my TaxCloud account?

TaxCloud Account Lockout Policy

How to change the email address on your TaxCloud account

Account Management

How to create a TaxCloud account?

Account Setup

How can I get a copy of my TaxCloud invoice receipt?

How Payment Methods Are Used For Billing and Tax Funding

How do I change my default payment method?

How to Add a Payment Method in TaxCloud

Understanding Your Plans & Billing Page

Billing and Payments

Understanding the difference between TaxCloud Starter and Premium Plans

Changing your TaxCloud Subscription Plan

Fee Schedule: Understanding TaxCloud Fees

What are API calls and what do they do?

Where to Find Your API Credentials

TaxCloud System Status

What happens if I go over my allotment of orders or filings?

What's the difference between a lookup and an order?

Understanding the Minnesota Delivery Fee

How to Speak to a member of each state's DOR

Does TaxCloud collect the Colorado Retail Delivery Fee (CO RDF)?

How do I find my Merchant Number?

What Services Does TaxCloud Provide?

Is TaxCloud collecting Illinois Retailer's Occupation Tax (ROT)?

What is a multi-state id or sstid?

How do I confirm a rate with TaxCloud?

What is a voluntary seller?

How to Speak to a Member of Each State's Tax Authority or Department of Revenue

Can TaxCloud help with my State Income Taxes?

What are Home Rule States?

Understanding Nexus Threshold Calculations

How to Add an Exemption Certificate to TaxCloud

How to Upload Exemption Certificates in Bulk

What is an Exemption Certificate?

TaxCloud Audit Support Overview

How to contact TaxCloud?

Does TaxCloud Handle Sales Tax License Renewals?

Nebraska - Enforcement of Lien Notice

How to register in a new state and obtain my Sales Tax License

Louisiana State Sales Tax Rate Update

Florida Hunting, Fishing, and Camping Sales Tax Holiday (Sept 8 – Dec 31, 2025)

When To Forward a State Notice to Taxcloud

Arkansas - Excise, Waste Tire or Withholding Wage Tax

California - CDTFA Statement of Account

Colorado SUTS Filing Reminder Notices

Connecticut - Delinquency Notice

Florida - Credit Memo

Indiana - Notice of Proposed Assessment

Michigan - Business Taxes Registration Summary of Changes

New Jersey - Certificate of Registration

North Carolina - Certificate of Registration

Rhode Island - Failure to Renew

Tennessee - Notice of Overpayment

Texas - Notice of Tax/Fee Due

Texas - Sales & Use Tax Return Paper Form

Wyoming - License Certificate

When does TaxCloud pull my tax funding?

Understanding Tax Reports and Drilling Into Transaction Details

Does Washington B&O (excise) Tax Appear in Your TaxCloud Reporting?

Understanding the differences between TaxCloud Tax Reporting and Your Platform's Tax Reporting

Using the Download Center for Reports

Reporting

How to Import Partial Refunds via CSV

CSV Template Required Fields and Column Descriptions

When is the deadline to upload my transactions to TaxCloud?

Why are exempt sales taxing in my import?

What is TaxCloud's policy regarding Transaction import timing?

How to Upload Transactions via CSV

Uploading Transactions via CSV

Uploading Historical and Marketplace Transactions via CSV

Transactions: Import and Export

Transaction Timestamp Policy

How to Filter Transactions with Advanced Search

Managing your transactions

How to manually return a transaction in TaxCloud?

Can I edit a transaction?

How to View and Share Transaction Details

How to Locate a Transaction URL in TaxCloud

Transactions: Overview

Navigating Your Tax Dashboard

Understanding TaxCloud's Filing Costs & Filing Subscription

What are TaxCloud Filing Fees?

Understanding Your Tax Reporting Page

What does it cost for TaxCloud to file for me in non-SST states?

Does TaxCloud file Withholding Tax?

Filing: General

How to Request TaxCloud to Begin Filing Sales Tax Returns

How do I confirm my filings have been submitted in SST / Streamline member states?

How to Stop Filings with TaxCloud

How can TaxCloud assist with Filing?

Enabling Filing in TaxCloud (via Thresholds Page)

I just got a filing frequency change notice, what should I do?

How do I know if TaxCloud is filing for me in a state?

Why might my Direct Filing ACH be less than what TaxCloud is saying I collected.