Does the "Charge tax on this product" checkbox do anything if I haven't set up taxes in my store?

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Tourist
12 1 2

I haven't set my store up to collect any sales tax. I'm located in Canada and only selling to the US and don't have Nexus of any kind (yet) so don't need to charge tax for now.

 

I haven't set up my store to collect any tax which you can see here

https://screencast.com/t/2AirqoVtX4m

 

But when I click into any variant of any of my products there's a checkbox that says "Charge tax on this product" and they're all checked by default, which you can see here:

 

https://screencast.com/t/uU8zpf5CKc

 

Does me not having tax set up (first screenshot) override the little checkbox? Ie. is that the global setting? Meaning, does that checkbox do nothing if I haven't set my store up to charge taxes?

 

Thanks!

 

 

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Shopify Staff
Shopify Staff
1110 108 278

This is an accepted solution.

Hey there, @quinnsouther 

 

Bo here from Shopify Support! 

 

That is a really great question, I'm glad you asked! So, as you have noticed, products are set up to automatically charge tax automatically. This is because by default stores ought to be charging tax. As you do not have a nexus in the United States currently you should not be collecting tax. The tax settings in Settings > Taxes do override the product settings. To put it simply - if there are no tax rates set up for the United States and a customer from the United States checks out they will not be charged tax. I hope this explains things for you. 

 

All the Best,

Bo

Bo - Social Care @ Shopify


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Tourist
12 1 2

Awesome thanks for the response @Bo 

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Excursionist
20 0 3

Hi,

I'm getting ready to go live in a week and we ran our first test. Because I'm in the state of Connecticut, I should only be having tax added on orders shipping to CT. We ran our first test of placing an order today and Shopify put tax in before we had even provided a ship-to address and I don't think that should happen. Then, when we did we used an out-of-state address, it did not remove the tax. That's just plain wrong. I have the "Charge tax on this product" tick-box on for all product and it appears that is overriding the back-end tax setup. 

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Shopify Staff
Shopify Staff
1110 108 278

Hey there, @Catsmom 

 

It sounds like you may have your products set up to include tax in their price as opposed to having it added at the checkout. You can learn more about this here

 

All the Best,

Bo

Bo - Social Care @ Shopify


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Tourist
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Hi @Bo 

 

This is Chris Fong from Hong Kong, our Shopify store located in Hong Kong, and we sell the product price in USD currency, and Hong Kong is NO TAX.
And now I have the product price USD100 (this price for product without any tax) for Hong Kong customer or any customer located in the country is NO TAX, if the customer come from UK, and UK have 20% tax, then we will charge this customer USD120 (product price USD100 + 20% UK tax = USD120), currently the shopify can only calculate the tax on checkout page, and I would like to let this UK customer see the price included tax on product page, and we want international customer can see the price with their local tax, this is very important to let customer see the price already included their local tax at product page, due usually the customer expect to pay the same price when they see at product page.

 

As I know shopify App "Geolocation" can automatically detect the customer location, is it possible to let the website detect the customer location, then showing the price with their local tax, if I already set the tax rate for these countries, then the price will showing included tax on product page, so customer can see the price 100% same from product page to checkout page, is it possible?

 

Looking forward to hear your comments. Thank you.

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Shopify Staff
Shopify Staff
1110 108 278

Hey there, @chrisfong328 

 

Thank you for getting in touch regarding this. This is not something that would be possible natively on the platform. You could, however, hire a Shopify Expert to build this application for you. 

 

All the Best,

Bo

Bo - Social Care @ Shopify


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Tourist
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Thank you @Bo , I will contact the shopify expert to fix this issue.

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New Member
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Hi Bo,

I've just come across this chat as I'm stuck on this same topic. Myself and my shop is based in the UK, trading in GBP, and offering products mainly to the UK but not ruling out international customers. Do I need to make sure I enable the "charge taxes" or do we not need this as we're UK based?

Thanks in advance.
Betty James
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Shopify Staff
Shopify Staff
1110 108 278

Hey there, @BettyJames 

 

That is a really great question. I would not be able to advise you on where you need to charge taxes for. As far as I am aware, you will certainly need to charge taxes on orders from customers within the UK, however, I am unsure as to what extent you will need to charge taxes in Europe and further afield. Shopify Employees are unable to give tax advice to this extent. I would recommend reaching out to a local ta expert or authority regarding this. 

 

All the Best,

Bo

Bo - Social Care @ Shopify


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