Financing, tax rates, and accounting
We collect taxes in many states, a lot of these states work properly such as calculating county and local sales tax if they apply. Shopify collects PA's 6% but will not collect sales tax for Philadelphia and Allegheny county both of which are 2% on top of state. We essentially pay this out of pocket because it would be a violation of the tax law not to. Some of these sales are 1000's of dollars.
Shopify can you fix this please?
Hey, @KNSpeedFactory
We have a handy guide here regarding online sales tax. In that guide, there is some relevant info regarding Pennsylvania. Pennsylvania (6%) is what is known as an origin state. Philadelphia (2%) and Allegheny County (2%) are the only jurisdictions with a local tax in Pennsylvania. Merchants that have a nexus in Pennsylvania, but are located out of state, are only responsible for the state tax. Which would potentially explain why you are seeing orders in your store that are coming from either one of those counties but you are not seeing the additional 2% rate being applied.
With that said, we always recommend consulting with a tax professional in your area to ensure that you are up-to-date and following the guidelines of your local jurisdiction. If there is anything else I can help you with, please let me know.
Dirk | Social Care @ Shopify
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PA is our home state, so we have to collect it. So this does not apply as we are collecting in the state we operate from.
Gotcha, @KNSpeedFactory
That does sound strange. It looks like we'll need to access your account in order to isolate any potential causes. While we're not able to provide account-specific support via the Shopify Community at this time, we'd be happy to continue assisting you through live chat, email, or callback. Please visit here and log in to your account to create a support request.
If there is anything else I can help you with, please let me know.
Dirk | 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
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