Shopify charging tax based on customers billing address (not the same state as the shipping address)

Shopify charging tax based on customers billing address (not the same state as the shipping address)

JS330
New Member
4 0 0

Hi All,

 

I came across a scenario where shopify charged taxes to a customer sending an item out of NJ (manufacturing state where we are located) to an address in a different state. Shopify collected taxes when it doesnt typically if the customer is sending out of state.

Does someone have any insight into why this may have happened?

Replies 2 (2)

KP_Enterprises
Explorer
63 2 16

Check the sales tax settings to see if that state was turned on for collecting sales tax. Also, check the settings to see if it's set to collect based on origination or destination state. That's where I'd start anyway.

Greta
Shopify Staff
1200 125 151

Hi, @JS330!

 

Thanks for posting in the Shopify Community. To determine the applicable tax rate, we utilize the shipping address. However, if only a billing address is provided (e.g., for digital product purchases), we rely on the billing address instead.

 

If that situation doesn't apply to your order and you'd like for us to review whether taxes were calculated correctly, feel free to get in touch with us through the Help Center. We'd be happy to take another look!

 

Please let me know if you have any other questions. 

Greta | Shopify 
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