{"id":28978,"date":"2026-06-22T18:44:11","date_gmt":"2026-06-22T18:44:11","guid":{"rendered":"https:\/\/synder.com\/help\/?p=28978"},"modified":"2026-10-22T18:16:44","modified_gmt":"2026-10-22T18:16:44","slug":"taxes-in-synder-a-guide-for-xero-users","status":"publish","type":"post","link":"https:\/\/synder.com\/help\/taxes-in-synder-a-guide-for-xero-users\/","title":{"rendered":"Global Taxes in Synder: A Guide for Xero Users"},"content":{"rendered":"\n
This guide is for businesses that use Xero<\/strong> with Synder and need to record taxes correctly across their accounting.<\/p>\n\n\n\n Use this guide if you:<\/p>\n\n\n\n Synder does not calculate taxes. It reads the tax information your payment platform sends, and then records it in your accounting software. If your platform doesn’t carry tax on a transaction, Synder has nothing to pass through.<\/p>\n\n\n\n However, if your payment platform sends no tax data \u2014 for example, Stripe without Stripe Tax \u2014 there are custom solutions Synder can implement to handle this (Available on the Pro and higher tier plans). These are covered in the sections below.<\/p>\n\n\n\n The core tax setting in Per-Transaction mode is Use tax codes<\/strong>, found under Settings \u2192 [Your Integration] \u2192 Taxes<\/strong>.<\/p>\n\n\n\n This toggle controls how tax amounts are recorded in Xero:<\/p>\n\n\n\n Note:<\/strong> Synder automatically detects whether the transaction is Tax Inclusive or Tax Exclusive based on the original transaction data \u2014 this is not something you configure in Synder.<\/p>\n\n\n\n Enabling Use tax codes<\/strong> reveals the following additional settings:<\/p>\n\n\n\n Lets you apply a specific tax code based on conditions rather than relying on matching the rate from your payment platform. There are three uses:<\/p>\n\n\n\n Some jurisdictions require businesses to account for tax on payment processor fees. This setting lets you apply a tax code to fees recorded as expenses in Xero. Only the Generic Tax Code<\/strong> option is available here.<\/p>\n\n\n\n Important:<\/strong> For location-based tax routing (e.g. different tax codes per country or region), use Smart Rules<\/strong> in Per-Transaction mode to apply the correct tax code based on conditions such as shipping location or product name. For more complex multi-jurisdiction setups, contact Synder support about custom development<\/strong> (available on Pro plan and above<\/strong>).<\/p>\n\n\n\n Tax tracking in Summary Sync is not active by default. To start working with taxes in Xero:<\/p>\n\n\n\n Once enabled, Synder changes how it builds summary entries. For each tax amount in your transactions, Synder creates:<\/p>\n\n\n\n This structure ensures that taxable revenue is reported correctly, tax appears in Xero’s Tax Summary report, and income is not overstated.<\/p>\n\n\n\n Note:<\/strong> Synder always treats amounts as net (before tax) and calculates tax as exclusive in Summary Sync.<\/p>\n\n\n\n After enabling Tax Tracking and importing a transaction with tax, a new mapping line called Taxes Payable<\/strong> becomes available in your Mapping \u2192 Mappings list<\/strong>. You must map this line to your tax liability account in Xero.<\/p>\n\n\n\n Map it to a liability account of your choice. Only Output (sales) tax rates<\/strong> can be mapped to Taxes Payable lines in Xero Summary Sync \u2014 Input (purchase) tax rates are not supported.<\/p>\n\n\n\n Remember to assign the zero-rated tax code to all other (non-tax) mapping lines, or rely on the default zero-rated code set in Settings.<\/p>\n\n\n\n Changes only apply to newly generated summaries.<\/strong> After updating your mapping, rebuild existing summaries to reflect the new settings. See How to Rebuild Summaries<\/a>.<\/p>\n\n\n\n If you sell to customers in different countries or regions with different tax rates, you need a way to route each transaction to the correct tax code and account.<\/p>\n\n\n\n Group by Region automatically splits your summary entries by the customer’s country or region, giving you a separate Taxes Payable<\/strong> mapping line for each \u2014 so you can assign the correct tax code and Xero account to each region independently.<\/p>\n\n\n\n Note:<\/strong> Enabling Group by Region splits all<\/em> mapping lines by region \u2014 not just taxes. Sales, refunds, and shipping income lines will also be split.<\/p>\n\n\n\n To set it up:<\/strong><\/p>\n\n\n\n Unknown and N\/A entries:<\/strong><\/p>\n\n\n\n Need more granular control?<\/strong> Use Custom Groups alongside Group by Region \u2014 for example, to split by city, customer, or description. Go to Mapping \u2192 Groups \u2192 Add group<\/strong>, set Type<\/strong> to Custom<\/strong>, define your conditions, and select Taxes Payable<\/strong> as the accounting category. Custom groups take priority; Group by Region handles everything that doesn’t match.<\/p>\n\n\n\n Smart Rules (Recipes) let you route tax by shipping location automatically \u2014 no custom development required.<\/p>\n\n\n\n\n
\n\n\n\nHow Synder Handles Taxes<\/h2>\n\n\n\n
\n\n\n\nPer-Transaction (PT) Mode<\/h2>\n\n\n\n
The Use tax codes Setting<\/h3>\n\n\n\n
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<\/figure>\n\n\n\nAdditional Settings for Xero<\/h3>\n\n\n\n
Generic Tax Code<\/h4>\n\n\n\n
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<\/figure>\n\n\n\nTaxes on Expenses<\/h4>\n\n\n\n
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Activating Tax Tracking<\/h3>\n\n\n\n
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<\/figure>\n\n\n\nWhat Tax Tracking Does<\/h3>\n\n\n\n
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Mapping Your Tax Account (Taxes Payable)<\/h3>\n\n\n\n
<\/figure>\n\n\n\nKey Limitations<\/h3>\n\n\n\n
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\n\n\n\nHandling Multiple Tax Rates From Different Regions<\/h2>\n\n\n\n
Summary Sync: Group by Region<\/h3>\n\n\n\n
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Per-Transaction: Smart Rules<\/h3>\n\n\n\n
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