> ## Knowledge Base Index
> Fetch the complete knowledge base index at: https://help.reconcile.ly/sitemap.xml
> Use this file to discover available pages before exploring further.
> Pure-Markdown content can be obtained by appending a '.md' suffix to the content URLs listed in the sitemap (without the trailing slash).

# How do we handle tax?

[Reconcile.ly](https://www.reconcile.ly/) doesn't calculate any taxes. It simply grabs what is configured on your Shopify tax settings and then our app lets you choose which account various income streams get mapped to. This lets Xero keep control over calculating tax.  
  
For example:  
If we see an item has tax included from Shopify, we will code it against your nominated Xero account for taxable sales. This lets Xero calculate tax at the correct rate.

So, it's worth making sure your order taxes are correctly set up on your Shopify Admin settings and that you're mapping to the correct Xero account.