{"id":14967,"date":"2020-11-02T09:39:40","date_gmt":"2020-11-02T09:39:40","guid":{"rendered":"https:\/\/synder.com\/help\/?p=14967"},"modified":"2026-04-16T13:00:14","modified_gmt":"2026-04-16T13:00:14","slug":"apply-tax-on-fees-or-expenses","status":"publish","type":"post","link":"https:\/\/synder.com\/help\/apply-tax-on-fees-or-expenses\/","title":{"rendered":"Per Transaction Mode: Apply Taxes on Fees in your Accounting Software"},"content":{"rendered":"\n<p>The article explains how to <strong>apply taxes<\/strong> to payment <strong>platform fees<\/strong> in accounting software, including QuickBooks and Xero.<\/p>\n\n\n\n<p>Businesses in many countries must report taxes not only on sales but also on <strong>fees paid to payment platforms<\/strong>, such as <strong>service<\/strong> or <strong>processing<\/strong> fees.\u00a0<\/p>\n\n\n\n<p>Even when a tax is <strong>zero-rated<\/strong>\u2014meaning no payment is due\u2014accounting standards still <strong>require<\/strong> it to be properly recorded, creating complexity and potential compliance challenges.<br><br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>This guide is useful for:<\/strong><\/h2>\n\n\n\n<p>Businesses and accountants who need accurate,<strong> automated tax reporting<\/strong> on platform fees and other <strong>expenses<\/strong>. It helps streamline record-keeping, reduce errors, and simplify compliance.<\/p>\n\n\n\n<p><strong>Please note: <\/strong>Taxes on fees can only be applied in Per Transaction Mode.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For US Businesses: Fees are <strong>not taxable.<\/strong><\/li>\n\n\n\n<li>For businesses in VAT systems: taxes may be <strong>applied to fees<\/strong> as described in your setup.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Enable Generic Tax Codes<\/strong><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Go to <strong>Settings<\/strong> in the left menu. Ensure the required integration is selected at the<strong> top of the page.<\/strong><br><\/li>\n\n\n\n<li>Navigate to the<strong> Taxes tab.<\/strong><br><\/li>\n\n\n\n<li>In Expense Tax Settings, toggle<strong> Apply <\/strong>generic tax code<strong> <\/strong>to<strong> ON<\/strong>.<br><\/li>\n\n\n\n<li>Select the appropriate <strong>tax lines<\/strong> for:\n<ul class=\"wp-block-list\">\n<li><strong>Fees:<\/strong> Paid directly to the payment processor.<\/li>\n\n\n\n<li><strong>Application Fees:<\/strong> Paid to other third parties connected to the payment processor.<\/li>\n\n\n\n<li>Tax codes are sourced from your <strong>accounting platform<\/strong>. Ensure the required tax codes exist there before selection in Synder.<br><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Click <strong>Update<\/strong> to save changes.<br><\/li>\n\n\n\n<li><strong>Sync<\/strong> transactions.<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"549\" src=\"https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1-1024x549.png\" alt=\"\" class=\"wp-image-27129\" srcset=\"https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1-1024x549.png 1024w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1-300x161.png 300w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1-768x412.png 768w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1-1536x824.png 1536w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1-1080x579.png 1080w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1-60x32.png 60w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1-150x80.png 150w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Result After Syncing Transactions<\/strong><\/h2>\n\n\n\n<p>After syncing your transactions with t<strong>axes on fees enabled<\/strong> in your accounting software, each Expense\/Fee transaction will include the <strong>selected tax code<\/strong>. Taxes will be applied to <strong>all<\/strong> synchronized <strong>expense transactions<\/strong> and will be reflected in <strong>tax reporting.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"451\" src=\"https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1024x451.png\" alt=\"\" class=\"wp-image-27128\" srcset=\"https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1024x451.png 1024w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-300x132.png 300w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-768x338.png 768w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1536x677.png 1536w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1080x476.png 1080w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-60x26.png 60w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-150x66.png 150w, https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image.png 1900w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>FAQ<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Can I apply taxes to fees in all sync modes?<\/strong><\/li>\n<\/ul>\n\n\n\n<p><em>No. Taxes on fees can only be applied in Per Transaction Mode.<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>What should I do if I don\u2019t see the tax code I need?<\/strong><\/li>\n<\/ul>\n\n\n\n<p><em>Ensure that the required tax code already exists in your accounting platform before selecting it in Synder.<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Will this affect all synced transactions?<\/strong><\/li>\n<\/ul>\n\n\n\n<p><em>To apply changes to already synced transactions, resync them from the Platform\u2019s Transactions tab.<\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><a href=\"https:\/\/synder.com\/contact\/\"><em>Reach out to the Synder Team<\/em><\/a> via online support chat, phone, or email with any questions you have \u2013 we\u2019re always happy to help you!&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The article explains how to apply taxes to payment platform fees in accounting software, including QuickBooks and Xero. Businesses in many countries must report taxes not only on sales but also on fees paid to payment platforms, such as service or processing fees.\u00a0 Even when a tax is zero-rated\u2014meaning no payment is due\u2014accounting standards still [&hellip;]<\/p>\n","protected":false},"author":2233,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[369,372,368],"tags":[],"ppma_author":[338],"class_list":["post-14967","post","type-post","status-publish","format-standard","hentry","category-transaction-recording-per-transaction","category-taxes","category-fees"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Apply Tax on Fees or Expenses in QuickBooks - Synder Knowledge Base<\/title>\n<meta name=\"description\" content=\"Some countries levy taxes on both sales and fees. The new Synder feature records these taxes on expenses and fees in QuickBooks or Xero!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/synder.com\/help\/apply-tax-on-fees-or-expenses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Apply Tax on Fees or Expenses in QuickBooks - Synder Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"Some countries levy taxes on both sales and fees. The new Synder feature records these taxes on expenses and fees in QuickBooks or Xero!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/synder.com\/help\/apply-tax-on-fees-or-expenses\/\" \/>\n<meta property=\"og:site_name\" content=\"Synder\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-02T09:39:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-16T13:00:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/synder.com\/help\/wp-content\/uploads\/sites\/2\/2020\/11\/image-1-1024x549.png\" \/>\n<meta name=\"author\" content=\"George Bylin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"George Bylin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Apply Tax on Fees or Expenses in QuickBooks - Synder Knowledge Base","description":"Some countries levy taxes on both sales and fees. The new Synder feature records these taxes on expenses and fees in QuickBooks or Xero!","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/synder.com\/help\/apply-tax-on-fees-or-expenses\/","og_locale":"en_US","og_type":"article","og_title":"Apply Tax on Fees or Expenses in QuickBooks - Synder Knowledge Base","og_description":"Some countries levy taxes on both sales and fees. 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