Shopify Billing CANADIAN taxes

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Forgive me, but I did a seach and cannot seem to find an answer.

 

My bill shows by monthly fee in USD> $29.00

but then it is charging me GST 5% and HST 8% on top of that BUT IN USD!!

Is that allowed?

 

Total bill comes in USD, which is fine I suppose, but I am not sure it's right that they are charging me CANADIAN TAXES in USD

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Shopify Staff
Shopify Staff
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Hey!

 

Aria here, one of the Social Care gurus at Shopify.

 

I understand where you're coming from. I'm in Canada as well. It would be nice to pay the whole bill in CAD but the reason we bill in USD is that it's the most common currency used by merchants and customers on Shopify. Since GST and HST is a percentage of your bill, it needs to be in USD because the rest of the bill is. If we converted it into CAD, it would confuse people because the percentage would seem wrong. The total tax is 13% which is $3.77 on a $29 bill. Using today's exchange rate, that would be $4.95 CAD which would lead people to believe we were billing them 17% instead of 13%. It would also fluctuate as the exchange rate changes so it would seem odd the tax is different on every bill. Does that make sense?

 

How are you getting on with your store otherwise?

 

Aria
Social Care Guru
Shopify

Aria | Social Care @ Shopify
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Hi Aria,

 

Thanks for explanation, that helped me as well.... I have other question about it.

In my bill, I can see (GST,PST and Canada HST Canada Post ON (8%)). I don't know where do you base on to get this amount... If I calculate based on shipping fees that show in my bill, the amount is different.

 

How can I get more explanation about my bill? I would like to see in details all reasons for each charge.

 

Hope heard from you soon. 

 

Thanks. Have a great day!

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Shopify Staff
Shopify Staff
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Hey, @accountingAW 

 

Aria here!

 

I'd love to help you with that but it's difficult for me to understand the context without being able to see your bill. 

 

For personal issues that relate specifically to your business, please reach out to our support directly, so that we can authenticate you and access your account to give you accurate answers. You can contact us here. You can also contact us on Facebook Messenger.

 

For further context, this post covers all of the support we can provide and what each type of support is best for. 

 

We look forward to helping you out!

Aria | Social Care @ Shopify
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 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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As a Canadian business AND consumer, I was also confused about this! Although this explanation is helpful, it still does not justify WHY Shopify, a Canadian company, would charge their Canadian customers in U. S. dollars. You would think that a company with such a large customer base would want to SUPPORT their Canadian economy AND consumers, considering that they have no issues allowing Canadian businesses to sell in Canadian currency. With the condition of the Canadian economy and with small, family owned businesses being bought out by American companies or having to close down due to their inability to compete with their big box American competitors, it is disgusting that Shopify uses the excuse that it is just easier or a more simplified process by only charging in U. S. dollars. A company like yours, who grew exponentially in a short time, should be a PROUD Canadian company, however, you are not supporting your Canadian consumers. I think that you should consider billing your Canadian customers accordingly and fairly, even if that means spending some money to change your billing process. I am considering dropping my Shopify store and signing up with another reputable Canadian company that can meet my business needs in the same exemplary way as you do, but charge an amount compatible to our Canadian economy.
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Shopify Staff
Shopify Staff
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Hey @HuggingHazel !

 

I can understand your concern.

 

We have had a lot of merchants make the same request and there is a feature request with our developers. I added you to the list. It's something we'd like to do as part of our Internationalization (allow everyone to pay their bills in their own local currency) but it's a huge undertaking and it's not likely to change quickly. 

 

We are certainly proud to be Canadian. The original decision to bill in USD was made because the majority of our merchants are in the US and USD is the most widely used currency on our platform overall. A lot of Canadian stores are choosing to bill their customers in USD and often even use a US shipping service because they know it will increase their International orders. That being said, I do agree it would be great for everyone to have the choice.

Aria | Social Care @ Shopify
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 - Was your question answered? Mark it as an Accepted Solution
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I mean the whole explanation is a bit ridiculous, you give the ability to make the store charge in any currency but Shopify itself cannot charge in local currency of the store, which is why the taxes that are being charged are a bit higher because the USD To CAD conversion make it higher. I am surprised by the answer that your base is US but being a Canadian company, we prefer to work in USD and charge everybody based on Canadian tax laws and rates but in USD currency... I mean, help us here, where is the logic ??? 

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You can add me to the list with the same request.


@Aria wrote:

Hey @HuggingHazel !

 

I can understand your concern.

 

We have had a lot of merchants make the same request and there is a feature request with our developers. I added you to the list. It's something we'd like to do as part of our Internationalization (allow everyone to pay their bills in their own local currency) but it's a huge undertaking and it's not likely to change quickly. 

 

We are certainly proud to be Canadian. The original decision to bill in USD was made because the majority of our merchants are in the US and USD is the most widely used currency on our platform overall. A lot of Canadian stores are choosing to bill their customers in USD and often even use a US shipping service because they know it will increase their International orders. That being said, I do agree it would be great for everyone to have the choice.


 

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Thank you! WOW! That took almost a year to reply.
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add me to the list as well, 

 

another bone of contention is that i buy my shipping from canada post a canadian company pay in canadian dollars but then shopify jumps in a does a quick currency exchange money grab, not very ethical.  feels a little like shopify is putting the boots to their canadian clientele.  

yes i could have the option of also charging us dollars but i am not America can, dont want to be america, i am canadian operating in canada.