This guide shows you how to apply VAT based on shipping location automatically, using Synder Smart Rules (Recipes) — Synder sets the right tax code from the customer’s shipping address country.
The steps and screenshots below use QuickBooks Online with the Recipes tab, and QuickBooks Desktop works the same way. Xero doesn’t have the Recipes tab, so Xero users build the same rule manually — see For Xero: build this manually below.
Can be used if:
- You need Synder to apply different VAT rates depending on where the sale ships to (e.g., UK, EU, US).
- You use multicurrency.
Before You Start
- You must be connected to QuickBooks Online, QuickBooks Desktop, or Xero in Per-Transaction mode.
- The tax codes you want to apply must already exist in your accounting platform. If they are missing, add them there first.
- Know the country names or codes you want to use as triggers (e.g., “GB”, “Great Britain”, “United States”).
Apply VAT based on shipping location with a recipe
Below are the detailed steps to set up the Smart Rule for VAT based on shipping location in QuickBooks Online or QuickBooks Desktop, using Recipes:
- In Synder, go to Smart Rules in the left menu, then select Recipes.
- Find the Set UK tax in Sales Receipts or Set UK tax in Invoice recipe, depending on the transaction type you want to cover. You can enable both if needed. Click Try it out to open the recipe builder.
- In the IF block, check the shipping address condition. The default triggers when the shipping address country contains “GB” or “Great Britain”. Edit this to match your needs — you can change the country names or add a new variation.
- Click the THEN block and select Set QuickBooks entity data. In the pop-up, choose Tax and select the correct tax code from the dropdown.
- Click Submit to save the THEN block.
- Repeat for each country or region you want to cover. Each IF block handles a different location.
- Click Save & Close Rule to activate the rule.
For Xero: apply VAT based on shipping location manually
- Go to Smart Rules → Rules → Create Rule, then click Fetch data from Xero so your contacts, items and tax rates load into the dropdowns.
- Trigger: choose Invoice → Created. Xero has no Sales Receipt entity, so the rule runs on Invoices.
- Condition (IF): Contact: Shipping address → Country → Contains → “GB” (or your own country or region). In Xero the shipping address lives on the Contact, so the condition nests under Contact.
- Action (THEN): Xero action → Invoice → Update current → Tax Rate, then select the correct VAT rate from the dropdown.
- Add a separate IF block for each country or region you ship to, each with its own VAT rate in the THEN block. Then click Save & Close Rule.
Note: On Xero, the Tax Rate update applies to unpaid invoices only, because a paid invoice locks its tax fields. Since this rule fires on Invoice → Created, it runs before the invoice is paid, so VAT is applied correctly. For a fuller worked example of a shipping-location tax rule on Xero, see How to Apply Non-US Sales Tax Based on Shipping Location.
How to Confirm It Worked
Once your rule to apply VAT based on shipping location is live, sync a test transaction with a shipping address that matches one of your conditions. Then:
- Go to Platform Transactions in the left menu.
- Find the transaction and click Explain, then Show in your accounting software.
- Verify that the correct tax code has been applied automatically in your accounting software.
Limitations & Important Notes
- Recipes are QuickBooks-only: Xero has no Recipes/Templates tab, so Xero users build the rule manually (see the Xero section above). The result is identical.
- Per-Transaction mode only: Smart Rules are not available in Summary Sync. Xero is supported in Per-Transaction mode.
- Tax codes must exist in your accounting platform first: Synder applies existing tax codes — it does not create them. If a tax code is missing, add it in your accounting platform before setting up the rule.
- Order of IF blocks matters: Synder checks each IF block in order. If the first condition matches, it applies that rule and stops. So make sure your conditions are in the right order.
- Partial matching: The “Contains” condition allows partial matches. Use this to cover abbreviations and full names in the same block (e.g., “GB” and “Great Britain”).
FAQ
Can I set rules for both Sales Receipts and Invoices?
Yes. Set up a separate recipe for each transaction type. The steps are the same for both. On Xero, however, there is no Sales Receipt entity, so the manual rule applies to Invoices only.
What if the tax code I need isn’t in the dropdown?
The tax code must be created in your accounting platform first. Once it exists there, it will appear in Synder’s dropdown. On Xero, click Fetch data from Xero to refresh the dropdown after adding it.
Can I cover multiple countries in one rule?
Yes. Add additional IF blocks for each country or region. Each block can have its own tax code in the THEN block.
Does this work with multicurrency transactions?
Yes. Synder supports multicurrency, so VAT rules will apply regardless of the transaction currency.
Where can I check if the rule executed correctly?
Go to Smart Rules → Executions. Each execution is logged with the rule name, trigger time, and result.
Reach out to the Synder team via online support chat or email with any questions you have – we’re always happy to help you!
