Sales Tax Calculations

Brendan_Smith
Tourist
4 0 0

We have our California location correct for our business in the tax settings. Shopify is not charging county & municipal taxes for other locations in California. We have Automatic Tax Calculations set. When I look at each city, the rates are correct but they are not getting charged.  Today we got an order from Sacramento and there is no county or munipal tax charged.

I know about manual overrides but to do that for every city in California? Do I have to?

Replies 14 (14)
Anders3
Shopify Staff (Retired)
Shopify Staff (Retired)
231 1 42

Hi, Brendan!
 
Anders from the Social Care Team here. Thanks for reaching out today!

By default, you will see your State's tax rates automatically added to the County, municipal, and state taxes list in your Tax settings. If you click the percentage rate on this page, you can search what is included in the rate either by city, county or zip code. 

Also, do keep in mind that you will only need to charge taxes for the state you have a physical presence in. We have more information on that HERE. Since you're operating from California, you will only need to charge taxes on customers located in California. If you were to search for Sacramento in the link above, you will see what your store's rates are for the City. 

If you have more questions on that, feel free to follow back up!

Anders3 | Social Care @ Shopify
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dave41
Tourist
7 0 14

Anders,

i am also having same issues. 

we are located in LA County.

as example of problem:

one customer in Glendale, CA (LA county) was taxed 7.25% for state and 2.25% for county. 

another custome in San Bernardino, CA (San Berdo County) was taxed 7.25% for state and nothing for county or city (which should be .75%) 

i currently have the "auto tax calculator" checked for our store and our city, zip filled in for the state information line.

please advise.

Anders3
Shopify Staff (Retired)
Shopify Staff (Retired)
231 1 42

Hi, Dave!
 
Anders here. Thanks for the follow-up!

This tax error your experiencing sounds to be quite similar to a known issue our teams are currently working to fix. In order to properly track, and provide a solution to, this issue - I've sent you an email from our systems to create a ticket number. You can reply to that email so we can continue our support there. Subject line: "Forum Post Reply: Sales Tax Calculations".

Speak soon!

 

Anders3 | 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

Mark_Narcisa
New Member
2 0 0

I'm also having the same tax calculatoin issues in CA.

Has this been resolved? 

dave41
Tourist
7 0 14

Yes, 

CA taxes depend on county, city and where the "store" is located. 

you can check with the CA tax code website and shopify should have that updated now.

 

Michael_Weiss
New Member
2 0 1

I am also having same issues. 

We are strictly an Internet seller and are located in Sonoma County (95746).

A customer in Rohnert Park, CA (Sonoma county) was taxed 7.25% for state and 0.875% for county, but not the 0.50% Rohnert Park City tax.


The Sales Tax charged should have been:

6.0% State

0.25% Sonoma County

0.50% Rohnert Park City

1.875% Special District

I currently have the "auto tax calculator" checked for our store and our city, zip filled in for the state information line.

please advise.

dave41
Tourist
7 0 14

notify Shopify regarding the taxes. 

since their update, i have not had any problems.

 

good luck.

Ana7
Excursionist
23 0 18

Hi Brendan_Smith, 

 

After the Wayfair decision many companies are having the very same issues, since physical presence is not the only criteria to have a nexus anymore and it's tricky to set up in most marketplaces. I'd recommend you to use a software that calculate state and local sales taxes automatically such as Quaderno

 

Quaderno automatically charges the right sales tax rate in every sale, updates the them when they change, and notifies you every time you surpass a sale threshold. Also, with Quaderno tax reports, tax filing is a matter of minutes not hours.

 

Disclaimer: I work at Quaderno. If you have any questions, please feel free t reach out. I'm happy to help.

Zoo-Mii
Excursionist
41 1 7

Its now 5/21/19, ......has anyone from Shopify found a solution? We are also having the same issue where its not charging any county taxes for certain zipcodes in California.

Zoo-Mii
Excursionist
41 1 7

Just to give everyone an update, YES this is still an issue that is being ignored by Shopify. Ive contacted them twice today via 2 separate  agents, in which both seemed to sit in idle, fiddle, hesitate, and have absolutely no answer. While they can replicate the issue on their end.....the only response from both after 20min conversations were:

 

"we have passed this off to our technical team, we will contact you if/when we find a resolution"

oscargama
Tourist
3 0 1

I also contacted them for help. I live in NYC but sell all over USA. They told me I should fill the zip code where I do my sales. Unfortunately selling online you don't know where your next sell will come from, and it is impossible to fill all the zip codes of USA in the back end. I received a message by one rep saying that Shopify is only a sales platform and Taxes is not their responsibility. Each of us obligation to collect and fill our own taxes. I understand is not an easy fix, but they have the technology and finances to HELP. There is a guy that mentioned QUADERNO. Is that an application you can install in Shopify?

Ana7
Excursionist
23 0 18

Hi oscargama, 

 

You can integrate Quaderno with Shopify. Unfortunately, we can only read the data Shopify provide, we cannot calculate the sale tax in this particular case. What we can do is notify you when you have economic nexus in any state so you would know that you have to collect tax. 

 

If you have any doubt, you can write to support@quaderno.io

 

Disclaimer: I clearly work at Quaderno 😉

Jroyce1180
Pathfinder
86 4 18

@Ana7 Hello, thanks for your post. I am interested in any future plans that Quaderno has with further Shopify integrations. 

Ana7
Excursionist
23 0 18

Hey @Jroyce1180

We are working on that, unfortunately it doesn't depend on us but on Shopify.

Still, you can do all the automatic invoices, tax report and get the threshold surpass notifications with Quaderno

If you have any doubts, please reach to us at support@quaderno.io

Thanks, 

Ana