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

Solved
Highlighted
New Member
1 0 0

Hi Bo, 

I have a question as well. If I check “add tax to this product” does that mean I’ll be charging taxes right away? I also heard I need to see each state how much they charge for taxes. But is that the same as “add tax to this product” and state taxes? I’m a bit confused I’m from NYC & the sales tax is 4.5% will that cover sales tax? 

0 Likes
Highlighted
Shopify Staff
Shopify Staff
1102 107 267

Hey there, @Yesica 

 

Great question! So when you opt to charge taxes for your product on the products page it simply marks the product as taxable, you will still need to set up the tax rated in Settings > Taxes so the system knows how much taxes to charge based on the customer's address. You can read up on setting up tax rates for the US right here. For any specific questions about what taxes you need to be charging I would recommend reaching out to a local tax expert as Shopify employees are not qualified to answer specific tax questions. 

 

All the Best,

Bo

Bo | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted
New Member
1 0 0

Hi Bo,

I live in Lisbon, Portugal, and I need to add our VAT value to all the persons buying from my shop. Actually, the price I put in the products says "Tax included" but when the order is done, it doesn't show the original value + the VAT value. It looks like you don't pay VAT at all (except for the orders in my country Portugal).

I read a lot about the subject and I think I understood that I need to do the following :

Setting => Taxes => enter the 23% manually to each country

Does it seems correct ? I need to be sure that it won't add  23% on top of the value that is already supposed to have the tax included.

I also need to set up the VAT for the shipping. How do I proceed for that ? I have no clue...

Many thanks for your help.

Paula

0 Likes
Highlighted
Shopify Staff
Shopify Staff
1102 107 267

Hey there, @Luz2020 

 

Thank you for reaching out. When you set up your products to have tax included no further cost will be added to the product when a customer orders, the system will set up within the order itself that 23% of the product price is VAT and this will show in your reports. You can manually set up what countries you are setting up tax for in Settings > Taxes and add the percentages there as you have mentioned. This 23% will not be added on to the orders but be seen as part of the order itself - included in the product price you have set. You can also set up your shipping as taxable as per this guide

 

Let me know how this goes and if there is anything else I can assist you with, I'm happy to help!

 

All the Best,

Bo

Bo | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted
New Member
3 0 0

I followed the instructions on how to set up taxes and checked each product with "Charge Tax on this product" Charge tax on this Product - Checked.JPG

Along with assigned appropriate DC sales tax w/ ID # DC sales taxrate added.JPG

Mark all my customers to "Collect tax" Customer - Collect Tax - Checked.JPG

 

And yet, the report showed no tax is collected. Products are not taxed.JPG

 

Please advise

Sincerely,

Robert Wood

0 Likes
Highlighted
New Member
7 0 0

Shopify has t realise that UK sites need a function where we can disable the tax on products and into the checkout. Some products here we are not allowed by the rules of government to charge VAT fr example - magazines, childrens clothing, safety helmets and footwear, please make this a function we can use as even developers dont know what to do and believe me i have tried...

0 Likes
Highlighted
Shopify Staff
Shopify Staff
1102 107 267

Hey there, @robertwood 

 

Are these orders addressed to the District of Columbia? If not, the system will not collect tax on them. For most merchants, the most important considerations are where they're obliged to register to collect tax, and where they ship from and ship to. To learn more about tax registrations, refer to Nexus, and for more information on how your shipping affects your tax rates, refer to Tax sourcing.

All the Best,

Bo

Bo | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted
Shopify Staff
Shopify Staff
1102 107 267

Hey there, @skyblu 

 

In order to allow merchants to charge specific rates on specific items, Shopify added tax overrides. Tax overrides can be added to individual collections. You can read up on tax overrides right here

 

All the Best,

Bo

Bo | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted
New Member
1 0 0

I will contact the shopify expert to fix this issue.

0 Likes
Highlighted
New Member
7 0 0

Thanks Bo - I tried this but it still adds tax at 20% in the cart.

0 Likes