Philadelphia Beverage Tax

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Hello,

 

As some of you might already know, Philadelphia has Beverage Tax imposed on sodas and other sweetened drinks.

Can someone let me know how to achieve this in Shopify online store?

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Shopify Staff
Shopify Staff
99 8 13

Hi, there.

Hyde here from Shopify. Great question!

Shopify automatically calculates your taxes for you based on whether you are shipping from an origin or destination state. There's more information on that here.

I'm thinking the tax override might be something you could look into for this. Although Shopify automatically calculates most taxes, you can override tax rates to control how much tax you charge for a particular product, and to handle exceptions and exemptions. You can see more about how to do this from the screenshot below and the guide on Tax overrides here.

 


Do you think this could work for what you're looking to do?

All the best, Hyde.

Hyde | Social Care @ Shopify 
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Hello Hyde,

 

The solution you suggested will not work for me. Here's the reason:

  • The Beverage Tax is not a % of the price. Instead, it is a fixed rate per ounces of sweetened drink.

So, if you are to assign a Bev, Tax Rate in a Coke in can (12oz), using $0.015/oz  times 12 oz equals $0.18 -- this is the rate per unit I need to assign. it is not a percentage.

 

Any advice? 

 

Thanks!

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Shopify Staff
Shopify Staff
99 8 13

Hi @pinoygroseri , 

I've been reading up on this, and Shopify automatically charges sales tax, which is different from the Soda Tax which came into being in 2017.
So we would need to try work around this. There are two ways I can think of to do this:

1) you could try reconfiguring your product variants in terms of ounces. 

So for example:  variant 1 = 8 ounces, variant 2 = 10 ounces variant 3 = 12 ounces.

Then you could create a collection for each variant in the back end of your store (which you do not need to connect to the storefront). A collection for all 8-ounce products, a collection for all 10-ounce products, and so on. Here's how you can automate that with tags

And then you could create a tax override for each collection of variants so that for the collection of 8-ounce variants you're charging increased tax, for the collection of 10 ounces you're charging more, and so on. 

2) The alternative would be to simply include the tax increase in your product prices. 


Hyde | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
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Thanks Hyde! I opted the adding it in the price; the only caveat is the reporting side of it and get the total Bev Tax to pay every month since it will involve couple of steps to generate.

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