If you sell on Shopify and use Xero, connecting the two saves hours of re-typing every week. But many New Zealand merchants find their GST doesn’t quite match at month-end. Here’s how to connect them properly.
Your three options
1. Xero’s official Shopify integration
Available from the Xero App Store. It’s the simplest route and suits many small stores. Check its current details carefully: it syncs a daily summary of sales rather than every individual order.
2. A third-party connector app
Several apps sync Shopify to Xero, with different options for orders, payouts, fees and refunds. Read reviews from NZ merchants in particular, because GST handling varies.
3. A custom integration
For stores with mixed tax rates, multiple currencies, wholesale accounts or unusual reporting needs, a custom integration through the Shopify and Xero APIs maps everything exactly the way your accountant wants.
The GST traps NZ merchants run into
- Mixing GST-inclusive and zero-rated sales. Domestic orders include 15% GST; most exports are zero-rated. Both need the right tax rate in Xero.
- Payment and Shopify fees. Fees should be recorded as expenses, not deducted silently from sales.
- Refunds and partial refunds. These need to reverse the original sale and its GST correctly.
- Shipping. Shipping charged to NZ customers usually carries GST, too.
- Discounts and gift cards. Gift cards are generally not taxed when sold, but when redeemed.
A checklist before you rely on it
- Run a small batch of test orders: domestic, export, refunded and discounted.
- Check each one appears in Xero with the correct account and tax rate.
- Reconcile one Shopify payout against your bank feed.
- Ask your accountant to review the first month.
When a custom integration is worth it
Consider a custom integration when:
- You sell both retail and wholesale, at different prices or tax treatments.
- You sell across NZ and Australia and need clean multi-currency reporting.
- Off-the-shelf connectors leave you fixing entries every month.
- You want orders to also update stock, CRM or job systems.
Accountants and bookkeepers may also find Xero integrations every accounting practice should know useful.
Want Shopify and Xero working properly? We build Xero integrations every day, and our own product Invoice X is built on the Xero API. See our API integrations service, or compare platforms in Shopify vs WooCommerce for NZ businesses.
