Tax setting

Highlighted
Excursionist
34 0 5

Hi everyone,

 

UK based company

Have only had a handful of orders on our site since launch and looking at one we got the other day saw that VAT 20%(included) was added as a line on the order.

As we are not VAT registered I went into "settings" and un-ticked the "All taxes are included in my prices

If selected, all taxes will be calculated using this formula: 
tax = (tax rate * price) / (1 + tax rate). For example: £1.00 at 20% VAT will be £0.17 (rounded)."

This I feel is right as the price we sell at has no VAT element.

I was editing the price of an item today however and saw the "charge taxes on this product"  box was ticked and looking further it appears this is the case for all our items.

Is this correct ?

We sell to  European countries zone 1, UK, USA, Canada and Australasia albeit have only actually sold anything to Australia and the UK thus far

 

Thx 

Thanks Brian www.vintageretroandvinyl.com
0 Likes
Highlighted
Shopify Staff
Shopify Staff
224 0 22

Hey there!

Patrick, a Shopify Guru here :). 

If you don't have to pay VAT on your products you would need to unselect that option, this way no taxes would be charged on that item no matter the country. If however you do need to charge tax on them for certain countries if you leave it on and go to your Settings>Tax you should see the option to set the rates for different countries or create tax overrides and exemptions.  

Hope that helps :)
Patrick
support@shopify.com

1 Like
Highlighted
Excursionist
34 0 5

Hi Patrick,

Thanks for your reply.

So I've done the right thing unticking "All taxes are included in my prices" in settings

What is the "charge taxes on this product" button for on an individual item for then ?

Thanks

 

Thanks Brian www.vintageretroandvinyl.com
0 Likes
Highlighted
Shopify Staff
Shopify Staff
224 0 22

Patrick, a here again :). 

So with the "All taxes are included in my prices"  option, if it's selected on the order page you would still see taxes on your order but it wouldn't change the total price of the order. If it's unselected, "x" amount of tax would be added on top of the price. Have a look here for more info  on having tax included in your price.

For the "charge taxes on this product"  option, if that option is selected no taxes would be charged on that product no matter the rate that had been set up in settings>taxes.

Hope that helps :)
Patrick
support@shopify.com

1 Like
Highlighted
Excursionist
34 0 5

Thanks Patrick

 

Sorry I'm confused further, you say

So with the "All taxes are included in my prices"  option, if it's selected on the order page you would still see taxes on your order but it wouldn't change the total price of the order. If it's unselected, "x" amount of tax would be added on top of the price. Have a look here for more info  on having tax included in your price.

I don't charge VAT so the price I sell doesn't include that element. When I had it selected the customer order showed the correct end price but also a breakdown of the VAT element i.e. a sale of £13.99 showed VAT 20% (included) £2.33.

What I want is just the £13.99 and no VAT at all hence why I've unselected the option so what do you mean by "x" amount of tax would be added on top of the price ?

 

I note you also say

For the "charge taxes on this product"  option, if that option is selected no taxes would be charged on that product no matter the rate that had been set up in settings>taxes.

I hadn't noticed this before and it is ticked on my products so is it possible it gets auto selected when I unselected the "All taxes are included in my prices"  option as if so that makes sense and hopefully will get me what I want.....a single price with no VAT showing

 

Thx

 

 

 

 

Thanks Brian www.vintageretroandvinyl.com
0 Likes
Highlighted
Shopify Staff
Shopify Staff
224 0 22

Patrick here again :). 

If you don't charge taxes on any of your products if you go into the product and de-select the option to "charge taxes on this product"  then no matter the rates/settings you have set up in the Tax section in the admin no tax will be applied to the product.

If you have a lot of products where you need to change this setting a quicker way than going into every product would be to download your Product CSV then change the Variant Taxable field to False and then re-upload the file having selected the option to Overwrite the old information. :)

Finally, the "All taxes are included in my prices"   option, if this option is selected and your products are set up to have taxes charged on them you will see Tax appear on your order page but it won't affect the total price of the order. If it's unselected then when the customer goes to the checkout taxes will be added to the total price of the order. To prevent taxes being added you would need to de-select the "charge taxes on this product"  option as I mentioned above. :)

0 Likes
Highlighted
New Member
1 0 0

Hi if our taxes our included what do we choose?  Select or deselect “This product requires shipping”  

0 Likes
Highlighted
Shopify Partner
12 0 1

Hi, 

I am from Zilverback, We built custom integration, automating your bookkeeping processes so you can focus on other things. 

Our integration collects data from your payment gateways and booking your orders as paid to your accounting system. We can also custom integrate different VAT settings via account numbers facilitating it in your accounting system.

If you want to know more you can visit our site www.zilverback.com.

0 Likes
Highlighted
New Member
1 0 1

Just to verify, if I only collect taxes for my state and have that set up in my options, then I need to select the "Charge taxes on this product" option for each product, and then when a customer in my state purchases the item, they are charged the tax rate but if someone from another state purchases it, they are not charged taxes? 

1 Like
Highlighted
New Member
1 0 0
Hello riggsdp, did you ever get an answer to your tax question you were trying to verify? I too am trying to figure this out. I have my sales tax setting set up for my state but then I came across the "charge taxes on this product" setting for individual product variants and wasn't sure what it meant or whether to leave them checked or not? I also noticed in Oberlo's setting you can change a setting to automatically include taxes when importing products or something like that and I'm not sure if that has to do with the same tax settings for the individual product variants or not but basically am just trying to understand whether I should check those boxes based on my preference of wanting to include tax in product prices rather than charge tax separately except for when I have to collect sales tax via customers in my same state (triggering nexus) which should already be setup to collect automatically based on my current settings I'm hoping. Just when I think I have it all figured out seems there's always something new popping up. Can you help or anyone please? Thanks.
0 Likes