Taxes

Solved
Highlighted
New Member
1 0 0

Can someone please explain to me how to make this calculate state taxes? I've tried everything but missing something. It states "taxes and shipping will be calculated at checkout" I've gone through the checkout process several times and it never calculates state taxes.

 

Any input would be appreciated

 

0 Likes
Highlighted
Shopify Staff
Shopify Staff
533 58 86

This is an accepted solution.

Hi, @Alcmedspa

 

I’m Helen from Shopify Support. Welcome to the Community, and thanks for your question!

 

You can set up your tax settings within your Shopify admin manually, or you choose to have them calculated automatically.

 

For the automatic settings, taxes are generally charged when shipping to a customer that is located within a state that your business has Nexus within; Nexus essentially means the state your business has a physical presence in. 

 

Your business’ Nexus location is added in your Shopify admin by going to ‘Settings > Taxes’. Further steps for this are found here. I also recommend taking a look at our Help Doc for US tax Nexus for more detailed information and understanding. 

 

Additionally please read the Help Doc on US taxes for your tax responsibilities, further guidelines on settings, and how taxes work on Shopify.

 

All that being said, do you have your Nexus state(s) set up already? Are the orders that are not being charged taxes from within the same state that your business has Nexus?

 

Let me know what you find out, and I’m happy to dive into it further if the tax calculations are still not behaving correctly.

 

 

Helen | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Click Accept as Solution 

1 Like
Highlighted
New Member
3 0 0

Hi, I am trying to establish a dropshipping business located in Turkey. However, I am thinking to sell only to US, UK, Canada, Australia and New Zealand. I would be glad if someone could help me with my taxes. Do I still have to pay sales tax to Turkey Government or not? Also, I wanna know if I need to do other stuff before launching my store in terms of legal requirements. Thanks.

0 Likes
Highlighted
Tourist
5 0 0
Spoiler
Help

I have taxes included in my product pricing. I can see where the taxes were taken out. So how do I report this to my tax agency? Where do those funds go? Does Shopify automatically send that info over? That tax money was not sent to me as a payment which is why I ask

0 Likes
Highlighted
Shopify Staff
Shopify Staff
533 58 86

Hey, @Royalrose757. Great question! 

 

Shopify doesn’t manage the funds collected for taxes, or file and remit your taxes for you. However, there are reports within your Shopify Analytics that you can generate to help with gathering a summary of your sales taxes in order to submit it to your tax agency: Taxes Finance Report and Sales Finance Report.

 

Additionally, if you are located in the USA, Australia or Europe and using Shopify Payments, then there are unique tax reporting requirements for these jurisdictions. Details about how to obtain reports for these areas are found in the Help Doc for Tax Reporting.

 

More information about Taxes, how to set them up, tax reports, etc. can be found in the Help Docs here

 

It sounds like you are already working with your own tax professional, which is great! It’s highly recommended to always consult with a local tax authority to ensure you are collecting and reporting your taxes properly for your business in your region. Let me know if you have any further questions or concerns.  

Helen | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Click Accept as Solution 

0 Likes
Highlighted
Tourist
5 0 0
So what happens to the tax money that was collected?
0 Likes
Highlighted
Shopify Staff
Shopify Staff
533 58 86

Hi, @Royalrose757!

 

Since your taxes are included in your product prices, this means that the price you have set for your products from within your Shopify admin will take into account the appropriate amount of taxes that should be charged, and thus are included in the payout you receive for that order. 

 

For example, let’s say you have your product price set to be $100, and taxes for your region work out to be 5%. Your customer will pay exactly $100 to you because you have set your prices to include taxes. However if you look at the breakdown of the transaction directly on the order, you’ll see that $5 of that $100 is included for taxes. You’ll still be paid out $100 (minus the credit card fees, if applicable), but the taxes were included in the total product price. Does that make sense? You can read more about taxes being included in the product price in this Help Doc.

 

Alternatively, you can charge taxes in addition to your product price. Using the same values above as an example, in this scenario your customer would add the $100 product to their cart, but the taxes would then be added to it. Therefore, they would end up paying $105 when checking out instead. You would then be paid out $105 in total (minus credit card fees, of course).

 

To have taxes set up this way, you will need to uncheck the ‘show all prices with tax included’ box in ‘Settings > Taxes’ as seen here:

 

20-08-8tjfo-ln9y1

 

 

I hope that helps! Let me know if you need any further clarification.

 

Helen | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Click Accept as Solution 

0 Likes
Highlighted
Tourist
5 0 0
Mine are included in the price but my payout did not include the taxes
0 Likes