For US B2C orders from Shopify, Shopify calculates the sales tax. TRAEDE records the Shopify tax and passes it through to QuickBooks as the final tax amount. No additional tax calculation is needed.
Prerequisites
- The Shopify app installed and connected in TRAEDE.
- US sales tax configured in your Shopify store.
- The QuickBooks app installed and connected in TRAEDE (if you sync invoices to QuickBooks).
Setup
- Go to App Store → Shopify and open the shop you want to configure.
- Enable Pass through US VAT.
- Click Save.
Note: The QuickBooks Tax mode should remain set to Use Quickbooks built-in tax engine. Do not change it to Avalara Tax when using Shopify pass-through.
How it works
Tax on orders
When a Shopify order with a US delivery address is imported into TRAEDE, the sales tax that Shopify calculated is recorded on the order. This includes tax on product lines and shipping.
The Shopify tax is the final amount — it is not an estimate and will not be recalculated.
Tax on invoices
When an invoice is created from the order, the Shopify tax is carried over proportionally. When the invoice is booked and synced to QuickBooks:
- TRAEDE sends the invoice lines to QuickBooks as non-taxable.
- A separate Sales Tax line is added to the invoice with the exact Shopify tax amount.
- QuickBooks does not recalculate the tax — the Shopify amount is used as-is.
Difference from Avalara
| Shopify pass-through | Avalara | |
|---|---|---|
| Tax source | Shopify (at time of order) | Avalara AvaTax (estimate on order, final from QuickBooks) |
| Order tax | Final | Estimate |
| Invoice tax | Same as order (passed through) | Replaced with final amount from QuickBooks |
| Typical use case | US B2C orders from Shopify | US B2B orders created in TRAEDE |
| QuickBooks tax mode | Use Quickbooks built-in tax engine | Use Avalara Tax |