Financing, tax rates, and accounting
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When I order online from merchants that utilize Shopify payment processing applications, I am charged City sales tax by Shopify. This is based on my mailing address, but I do not live in the City limits. The algorithum used does not identify address locations in unincorporated county islands inside the zip code.
This has become a persistant problem. I have to have company's refund the City tax amount charged to me, or cancel the order because of being overcharged.
Sure wish Shopify would update their software to get this right and stop charging automatic City sales tax to shoppers not residing inside City limits!
Check Your Shipping Address and Shopify Tax Settings
Ensure that Shopify is correctly processing your address by double-checking the shipping address entered during checkout.
Shopify’s tax settings are typically based on the shipping address entered by the buyer. Sometimes, if your shipping address has been input incorrectly or if there’s a slight error (like extra spaces, incorrect ZIP code, or city designation), Shopify might default to city-level taxes based on the algorithm.
What to do:
Contact the merchant to ensure your address is accurately reflected in the order details and the ZIP code is correct.
Check Shopify's Tax Settings: Shopify automatically calculates tax based on the customer's shipping address and the region. Shopify usually handles tax calculation via a third-party service, so double-check the settings.