Shopify is listing taxes but is NOT charging them

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Tourist
6 0 0

My shopify site is calculating the taxes and displaying them in the estimate to our customers. But is NOT CHARGING those taxes

 

taxes listed, but not chargedtaxes listed, but not charged

You can see that the math is wrong. Shopify is not charging the tax. the Total SHOULD be $889.50.

I've confirmed that the products have their "this product is taxable" square checked.  I checked "Settings/taxes" I have "show all prices with tax included" selected. 

I found similar thread from someone with the same problem. But it looks like no one helped the poor guy.

 

This is a BIG problem people. You do not mess with the IRS. Any idea what's going on?

I'll report whatever solution I find.

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Shopify Partner
36 1 3

Hello @APG-David 

If you have  "show all prices with tax included" selected, then the price you enter on the products should have the tax added. Shopify will consider that price as inclusive of all taxes.

 

For USA, the preferred option is to uncheck that Show prices checkbox. The tax should be excluded because it is different for different places. If you do that, the tax will be calculated correctly. If you want to keep it included, then change the prices on the products.

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Tourist
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Thank you Parextech, it was kind of you to respond so quickly. 

Our problem never was that the taxes weren't being calculated properly. There were. (We use TaxJar to calculate and keep track on the various physical and economical nexxus's for us in the US).
The problem was in Shopify not charging the customer for those taxes.

I did discover that switch that Paraxtech mentioned as well and switched that check box OFF. Now the orders list the taxes as a separate line item to our customers. 

What people need to know is that if you have that button turned ON. Shopify will list the tax as part of the overall price to the customer. The customer will see NO taxes listed as a separate line item on the order. However, Shopify will list the calculated taxes for you on the back-end. 

But Shopify does NOT CHARGE the customer that tax. You will be shorted on your order for that tax amount.

Now that we've turned that "Show all prices with tax included" switch OFF. The taxes are being applied as a visible line item on the SO, and added into the order total for the customer.

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