tax option in the product setup

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Tourist
18 0 0

hi ,

could someone explain the use of the below  what is the function use for ( tax)  ? which cases i shall click on tax? keep in mind i have customers from Europe , Asia , united states .

if i click the tax bottom the customer will pay additional or not ? if i click the tax my price will be increase or will be as i fixed it ?

Price
$
 
Compare at price
$
 
Cost per item
$
 
Charge tax on this product
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Shopify Staff
Shopify Staff
293 29 68

Hi, @radd!

 

Julie, here from Shopify Support.

 

Great question. As a business owner, depending on where you are located, you might need to charge taxes on your sales, and then report and remit those taxes to your government. How you should set up your taxes really depends on where you are located. For merchants located in the United States and Canada, there is an option to have taxes calculate automatically based on current US and Canadian tax rates. With taxes calculating automatically, the taxes your customers pay are based on where your business' physical presence is located and based on where the customer is from. We actually have a help doc on taxes I recommend checking out. This help doc goes over everything you need to know about how taxes work in Shopify.

 

To address your question, if you choose to include taxes in your product price, customers will not be charged any additional cost other than the product price and shipping (if applicable) when they reach the checkout. Having taxes excluded from product prices, on the other hand, means that your product prices will be displayed without taxes in your store. It's also important to note that the tax rate is based off the product price, rather than the compare at price or the cost. 

 

If you aren't sure as to whether you should be collecting sales tax, I highly recommend consulting with a tax professional, as they will be able to offer you guidance and ensure you're abiding by your local tax laws. They will also be able to inform you as to whether you are required to collect taxes from customers in Europe, Asia, and the United States. 

 

We also have a help doc on how to set up your taxes in Shopify. Where are you located? If you're located outside the United States or Canada, we have a setup guide relevant to merchants outside of these countries you can check out here.

 

Let me know if you have any further questions. 

Julie | Social Care @ Shopify
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Tourist
18 0 0

  @Julie hi Julie 

my store  located in United state Florida or Possibly New York  which  is  considered as (destination state ) , so how can i fixed automated tax to customers in united state ? 

in this case i shall remove the tax from the product itself  for the other  countries ?

what is the monthly  charge  i have to pay for shopify  ?

how can i setup the payments for my costumers ? 

how can i verified my store that is working properly before launching ?

soon i will launch my store . 

Sorry many questions (: but i need to ensure everything is fine before launching the store .

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Shopify Staff
Shopify Staff
293 29 68

Thanks for following up, Rad!

 

Since you're based in the United States, you can most definitely choose to have taxes calculate automatically. We actually have a help doc that outlines instructions on how to set this up, which you can check out here. Once you have automatic tax calculations enabled, customers will be charged sales tax based on your physical presence in Florida or New York and based on where the customer is located. By default, Shopify has a 0% tax rate set up for the rest of the world, which most US merchants choose to leave as-is, only keeping automatically calculated US taxes. However, it's always a good idea to check with a tax professional if you aren't sure whether you should be charging taxes outside of the United States.

 

As for your monthly subscription charge, the amount would depend on the plan you select. Most merchants opt for our $29 per month Basic plan, which includes an online store, unlimited products, two staff accounts, access to a number of sales channels, and more. Feel free to check out our pricing page, which also outlines our various plans and their features.

 

You can set up payment providers in Settings > Payment providers. Once you’re here, you can set up your Shopify Payments account, which will allow customers to checkout using their credit cards. With Shopify Payments, you also won't have to pay any transaction fees - just the standard credit card fees will apply. When setting up Shopify Payments, you’ll be prompted to enter your bank account details so you can receive payouts from orders.

 

Most merchants also have PayPal Express Checkout enabled, which is a great way to offer customers another payment option. By default, PayPal is enabled on all new stores, but you will need to ensure you have set it up correctly so that you receive your payouts. You can check out our help doc on setting up PayPal on your store to follow along with the setup process step-by-step.

 

As you continue getting ready to launch, I highly recommend checking out our free Shopify Academy course, Getting Started with Shopify. This course includes videos that walk you through everything you need to do to create and launch an online store using Shopify. It’s a great resource to follow along with as you continue setting everything up. Before launching, I also strongly suggest going through our Store Launch Checklist, just so you can be sure you haven’t missed any important details.

 

I think you’ll find the Shopify Academy course really useful; it’s something I recommend all new merchants check out. There’s a ton of great advice in there and it’s incredibly helpful to follow along as you work on your own store. Let me know if you have any further questions, Rad.

Julie | Social Care @ Shopify
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Tourist
18 0 0

@Julie 

Hi julie ,

is the EIN number must to setup the store and accept payments ? 

i tried to search about it some sources saying YES so NO . 

as of now i dont have EIN yet . as mentioned before my store will be locating in USA . 

 

Regards

 

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Tourist
18 0 0

@Julie 

hi Julie .

i go through IRS website its mention that EIN is not required for sole proprietorship and the SSN can be used instead of EIN is that working with shopify policy ? i can complete the payment setup with SSN ?

Regards

 

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Shopify Staff
Shopify Staff
293 29 68

That's correct! 

 

If you are a sole proprietor and don't have an EIN, then you can submit the last four digits of your Social Security Number (SSN) instead. If you eventually obtain an EIN, you can always contact Shopify Support and we would be glad to update your account for you.

 

As you continue setting up your Shopify Payments account, feel free to refer to our help doc on configuring Shopify Payments, which goes over how you can set up payout notifications, set up fraud prevention, and edit the descriptor that will appear on your customers' billing statement when they purchase from your store.

 

 

Julie | Social Care @ Shopify
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New Member
1 0 0

I am from pakistan, doing freelance work on Shopify. I just want to know that who will collect tax money customer country's govt or business owner country's govt? if I tick into the box "Charge tax on this product" while adding product on Shopify

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Shopify Staff
Shopify Staff
293 29 68

Hey, @Muhammadafzal!

 

Great question. If you have a Shopify store and if you charge customers taxes on their orders, as the business owner, you'll be responsible for filing and/or remitting the sales tax if necessary; Shopify doesn't file or remit your sales tax for you. 

 

It's also worth noting that you might need to register your business with your local or federal tax authority to handle your sales tax. However, this is something that you'll just need to check with a local tax expert on. If this is the case, you could take advantage of Shopify's tax reports to help you get the information that you or your accountant will need to work on your sales tax returns.

 

Ultimately, I recommend checking with a local tax authority or a tax accountant to make sure that you charge your customers the correct sales tax rates, and to make sure you file and remit the taxes correctly. 

Julie | Social Care @ Shopify
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