Struggling to calculate your taxes? Well, not anymore. LearnWorlds supports a built-in integration with Quaderno, which can make the whole taxation process a piece of cake.
Quaderno is a sales tax calculating tool that sends automatic tax receipts and creates sales tax return-ready reports in a matter of seconds. As an invoice application, it makes the taxation process and EU VAT compliance rules easier to handle and manage.
When using the LearnWorlds integration with Quaderno, every time a purchase is about to take place in your school, Quaderno provides the correct tax rates based on the billing details provided by your customers during the purchase flow (available if Stripe, Paypal, or Pagseguro payment gateways are enabled). More specifically, during checkout, your customers are requested to fill in the necessary Billing Details (Postal code, Country, City, and Address), in order for your school to connect to Quaderno in real-time and determine the tax rates that should apply to the corresponding transaction.
Apart from helping you calculate your taxes, Quaderno can do the following:
- Automatically verify the Tax IDs of your customers.
- Collect and store the customer location evidence that you need to get from every sale (and store for up to 10 years).
- Create and send invoices in multiple languages and currencies.
- Help you ensure you don’t overpay on your TAX returns.
- Notify you of tax policies or tax rate changes to keep you up to date.
Moreover, Quaderno provides a tax reporting section, so whenever you have to file your taxes, you can visit the Reports section, select the report you need and the date range, and see how much you have sold and how much taxes you have to file per country.
How does it work?
When enabling Quaderno in your School, the Billing Details under the Financial Tab will be auto-enabled, as they are necessary for this integration to work. They will be requested during the checkout process and for Quaderno to determine the correct tax rates for every transaction and enable your school to apply them accordingly. In the very same section, you can also enable the Business Tax ID field; when a valid Tax ID is provided for EU transactions and only for companies that are registered in VIES, then the transaction is handled as a B2B sale, and taxes will not be applied. For the US, you can consult this article for more information.
Moreover, as part of the setup of the built-in integration of LearnWorlds with Quaderno, you can choose whether the product price should include taxes or taxes should be calculated on top of the product price upon checkout.
You can also take advantage of the Quaderno-generated invoices in case you want to apply further customizations to the invoice’s appearance.
Most importantly, you can utilize Quaderno to automate tax management for sales if you have Stripe, PayPal, and/or Pagseguro enabled in your LearnWorlds school; the user billing details and also the taxation data will be synced with the information your payment gateway keeps for every transaction as well.
In order to connect your LearnWorlds school with Quaderno, you need to:
1. Activate a Quaderno Subscription.
2. Create your account by following the steps mentioned here.
Note: Under the Preferences → Default tax class, you need to register your product as an “e-service”.
3. Then you need to select your tax jurisdictions in Quaderno.
As soon as you proceed with this setup, Quaderno will automatically define and create the Tax Rates that apply to your product types and within these jurisdictions (no need to proceed with any extra action from your end).
Connect Quaderno with your LearnWorlds School
As soon as you complete the previous steps:
4. Navigate to your LearnWorlds school Settings → Financial → Tax Management.
5. Activate the integration.
6. Connect your Quaderno account. In case you are not already logged in to Quaderno, you will be navigated to the Quaderno Login form and then will get redirected back to your school again.
7. In Tax Calculation, select if the checkout will include the initial or final product price, so whether the VAT amount will be added to or subtracted from the product price (taxation or detaxation).
Note: In the case of subscriptions (recurring payments), when you use prices that exclude the taxes, the final prices may be subject to change as the tax rates may change from one payment to the next one.
8. Enable LearnWorlds to fetch invoices generated from Quaderno and make them available in your school and also shared with your customers. If you enable this option, the invoices settings under Financial → Invoices Setup will become inactive.
- In case you would like to keep the invoice numbering sequentially when enabling the Quaderno Invoices, you can follow the steps mentioned in this support article.
- As soon as the Quaderno integration is activated, the new billing information section under Financial → Billing Details will be automatically activated since the responses of the user in the standard billing details are needed to be forwarded to Quaderno in order for the integration to fetch and apply the correct taxes for every purchase. For more information about the Billing details, click here.
- Some standard billing details (Name, Address, Postal code, Country) are required for the integration to be functional and thus are not further editable when the integration is activated.
- For more information on Sales Taxes Guidance for online courses, you can check this link.
- Once a transaction is completed from your LearnWorlds school:
a. All transaction data will be sent to Quaderno as, by default, Quaderno will generate invoices and keep a full registry of your school's purchases. If you have enabled the previous 8th step (Fetch Quaderno Invoices), then the invoices will also be stored in your School under Reports Center → Orders and under Users → All Users → specific User Card.
b. The Quaderno contact data and customer records will also be synced.
Important note: When the integration with Quaderno is activated, the product price is only affected when the user navigates to the product’s checkout page, according to the setup of the integration (taxes to be included in or excluded from the price). In all other widgets or sections in your School pages that include prices, such as Course Cards, for example, you should inform your customers about prices being exclusive or inclusive with a Text widget, for example.
As soon as a user navigates to the checkout page of a product, the new billing details will automatically be activated, as Quaderno needs the user’s location in order to apply the correct taxes. As soon as the user enters their billing details, the product price will automatically adjust to reflect any taxes with the corresponding transaction.
Once the billing details are completed or changed, the payment section will display an area dedicated to taxes analysis along with the product price, according to the user location as provided in the standard billing details. In case Quaderno does not recognize the billing details provided by the customer, then no taxes will be applied to the purchase.
Note: Users can export their invoices generated from Quaderno from their Account page if the setting “Fetch Quaderno Invoices” is enabled (previous 8th step).
Quaderno Checkout Links
In case you would like to use Zapier with Quaderno, you can check our article on Quaderno checkout links on LearnWorlds here.
General Notes/ Use cases
- For existing Quaderno customers, it’s not necessary to migrate to the built-in integration, as both flows work independently.
- The percentage of the instructors’ and affiliates’ commission is calculated based on the total price of the product [including or excluding taxes, depending on the Quaderno setting that you have selected (previous 7th step)].
- Regarding payment plans, the name of the payment plan displays by default the original prices of the initial payment (if you have selected an advanced payment plan with an upfront payment) and the following recurring payments. If the Quaderno Taxes are exclusive (previous 7th step), this will result in the following break-down of prices:
- The standard billing details are forwarded to Quaderno for the calculation of the taxes to be applied in the corresponding transaction, and they are also included in the Quaderno-generated invoices. This does not apply to the custom billing detail fields as they will not be included in the Quaderno (or the LearnWorlds) invoices.
- In case Quaderno does not calculate taxes for a given country, the reason can be that you have not set the corresponding jurisdiction in Quaderno (previous 3rd step). In this case, no taxes are calculated/applied for the transactions from the corresponding countries, and you will have to manually monitor and pay the corresponding taxes.
- Note that Quaderno monitors thresholds per country, and you can monitor your sales against the thresholds per country in order for you to know when you have to register in a country and file taxes for sales in this country.
- If you have integrated with Stripe as your payment gateway, enabled Quaderno in your school settings, and you have set the Business Tax ID as required, then this will not be displayed in the form of a "checkbox" and the text "I am purchasing as a Business", but as a regular field in the payment page.