Automatically code international tax from receipts
Overview
Available on Ramp Plus. See Ramp Plus overview for plan details.
Ramp can help automate tax code selection by analyzing receipts submitted for transactions. This feature uses OCR (Optical Character Recognition) to extract relevant tax details from receipts, improving accounting accuracy and saving time.
Automated tax coding from receipts requires specific setup before it can be used. Each supported accounting integration has different requirements for tax code support. For integration-specific setup requirements, see Tax support by integration below.
Prerequisites
Before automated tax coding from receipts can work, the following must be in place:
- Ramp Plus subscription — automated tax coding is a Ramp Plus feature.
- Admin configuration — a Ramp Admin must enable automated tax coding with the rest of the accounting AI coding settings in Accounting settings under Automation settings.
- Connected accounting integration — your business must have an active accounting integration with tax codes enabled. See Tax support by integration for ERP-specific requirements.
- Tax codes available in Ramp — tax codes must be synced from your ERP or uploaded and configured in Ramp, depending on the integration. This happens automatically for some integrations when tax support is enabled.
How automated tax coding works
When a receipt is attached to a transaction, Ramp's system reviews the uploaded receipt to extract tax information and determine the correct tax code. Based on the quality and clarity of the receipt, Ramp assigns a confidence level:
- Green shield icon — high confidence automation; all verification criteria met
- Yellow shield icon — reasonable confidence automation; some criteria met, review recommended
- No icon — tax is either not present on the receipt or cannot be automated due to low confidence
Note: You can still manually select or override a tax code and amount at any time, regardless of the confidence level shown.
Criteria for automating a tax code
Ramp verifies the following four elements from the receipt. The more elements confirmed, the higher the automation confidence:
- Tax amount clearly broken out — the tax is itemized separately from the subtotal and total.
- Vendor location identified — the receipt includes enough detail to determine the jurisdiction.
- Explicit tax type listed — for example, "GST", "HST", or "PST" is clearly written on the receipt.
- Tax rate and amount match jurisdictional expectations — Ramp checks whether the tax rate and amount make sense for the vendor's location.
Example scenarios
| Receipt condition | Badge shown | Automation level |
|---|---|---|
| All 4 criteria met: vendor in Ontario, shows HST, 13%, amount matches expectation | Green | Fully automated |
| Only vendor and tax type identified | Yellow | Fully automated, recommend review by accountant |
| Tax is missing or unclear | No badge | Manual entry required |
Tax support by integration
Each accounting integration has different requirements and capabilities for tax code support. Automated tax coding from receipts is available for each integration listed below when the setup requirements are met.
| Integration | Automated tax coding from receipts | Details |
|---|---|---|
| NetSuite | Available | Requires Ramp Plus, automated tax coding enabled in Accounting settings, and the Tax Code accounting field enabled in Ramp. See NetSuite integration: International accounting support for setup details. |
| QuickBooks Online | Available | QBO supports tax coding for non-US locales, such as Canada and the UK. Tax codes sync automatically from QBO for supported locales. |
| Sage Intacct | Available | Sage Intacct supports tax coding with the Tax Detail field. See Sage Intacct integration: Sync taxes for setup details. |
| Universal CSV | Available | Universal CSV supports tax coding through CSV upload of tax rates and codes. It is enabled by default for Canadian businesses. See Universal CSV integration: Tax support for setup details. |
Frequently asked questions
Can I override an automated tax code?
Yes. You can manually select a different tax code at any time, regardless of the confidence level shown.
What if my receipt is missing tax info?
Ramp will not apply a tax code unless it meets the minimum confidence threshold. In these cases, no badge will appear and you can manually select a tax code.
Why do I not see the automated tax coding option?
Automated tax coding from receipts requires a Ramp Plus subscription, automated tax coding enabled in Accounting settings, and a supported accounting integration with tax codes enabled. Check with your Ramp Admin to confirm these prerequisites are in place.
Does automated tax coding work for reimbursements?
No. Tax code rules and automated OCR coding do not currently apply to reimbursements. See Employee reimbursements for Canadian businesses for details.