We are using Vend and have set up our store with a cost price and GST of 15%. In doing this, Shopify takes the GST exclusive price and does not add GST to the displayed sales price. Legally we have to present prices including tax to customers. The only way to fix this is to increase the Vend price by the GST amount, and then turn tax to zero %. Which means customers dont get a GST receipt in the physical store.
Any work arounds or system functionality to fix this? Im sure everyone is having the same issue in NZ and AU.
Lisa here from the Social Care Team at Shopify.
I'm wondering how you've set up your GST to calculate from Shopify's end. To ensure they're correct I'll just run over how they should be set up to calculate for NZ:
You can set taxes for your store on the Settings → Taxes page in your Shopify admin.
If you are missing New Zealand in the Tax rates list of countries, you will need to add it as a shipping zone first. Go to the Settings → Shipping page, click Add shipping zone and add New Zealand.
Once you have New Zealand included in your Tax rates list, you can set up its taxes.
To set up tax rates for Australia:
Here's a preview of tax settings for an Australian Shopify store.
Also, ensure you select "All taxes are included in my prices" from the Settings → Taxes page. This way the break down will be shown for your customers, and not added on additionally. After you've set up the tax settings for your online sales, follow this document to ensure your taxes are also set up correctly in Vend.
Hope this all helps! Here's some additional information about Shopify Vend Integration.
If you have any questions, please feel free to reply back.
- Lisa ?
Lisa | Social Care @ Shopify
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Yes we have correctly set up Tax in Shopify. Here is the scenario, if an item is $10 ex GST and $11.50 incl GST in Vend, the $10 ex GST price comes over to Shopify. With tax set up correctly in Shopify, the displayed price on the website shows as $10, and then when processing the sale through the cart GST is then added to the price and sells the item at $11.50 to the customer. All that is fine BUT in NZ its illegal to advertise the GST ex price, so we need $11.50 to be the price on the webiste, and then through the shopping cart it sell for $11.50 which includes $1.50 of GST. To get around this, right now we have had to set tax at 0% in Vend and add GST to the cost price, so we have $11.50 as the cost price and $0 in GST. That way the right price to present to the customer goes to Shopify and we turn tax off so it doesnt add it again... not good. Help?
I am also in New Zealand and registered for GST. I'm not sure if you have already discovered the way this works, but this is what I have discovered.
If you want to show GST exclusive prices on your product pages and have the tax added during checkout,
- in the Preferences > Taxes > Tax Calculations - untick "All prices include tax" and load the GST exclusive price as the price on each product.
If you want to show GST inclusive prices on your product pages and show the amount of tax that was included in the total during checkout,
- in the Preferences > Taxes > Tax Calculations - tick "All prices include tax" and load the GST inclusive price as the price on each product.
The other consideration is whether you charge GST on shipping. This is also expected in New Zealand, so tick the "Charge tax on shipping rates" as well. If you have chosen "All prices include tax" then the shipping rates should also include GST so that you do not lose part of your margin on the shipping cost.
Hope that helps