I have gone through all of the links and instructions and youtube videos on setting up taxes in Shopify so that when an item is sold in the USA, the appropriate sales taxes are added to the sale. All settings appear to be correct in our store, and yet, the taxes are still not being added.
This is quite frustrating for us. I am including a few screenshots to show that we are set up correctly. If you see anything missing, or if you have any other advice that I may have not already read, watched, or done, I would love to get that help. Thanks!
Elias here with Shopify Support. Thank you for reaching out.
I understand you’ve gone through lots of resources and instructions for setting up taxes in the US, but some orders are not being charged taxes. Nonetheless, I was able to get a good look at your tax settings from your screenshots and they seem to be set up correctly.
It’s important to note that US taxes are affected by several factors, so you won’t be collecting taxes from every state. These factors include where the product is shipped from, where the product is shipped to, where you’re registered to collect tax, item taxability, and tax exemptions. The most common of these factors is the destination and origin tax, as this determines whether you need to charge an origin tax or if the customer’s address charges a destination tax. That said, you will always collect tax if the customer is from the same state as you. Since I’m not able to see where you’re located or which state the customer is ordering from, it’s likely they are not required to pay taxes for your state.
Some states will be required to collect US tax nexus, which requires you to collect specific tax rates based on the types of products within certain states. For this reason, we recommend speaking with a local tax expert to ensure that you are collecting the correct taxes. If you’re selling to every state, you likely wouldn’t be collecting taxes for every order.
I hope this helps clarify the taxes in the US. If you have any other questions on taxes, don’t hesitate to let me know!