Shopify charging wrong taxes for Texas Sales

mweitzel
Tourist
8 0 1

Several states allow merchants to charge a uniform tax for sales into that state. California, Colorado, Florida, Idaho, and several other states do this. Instead of charging state, city, and county taxes, the state would require only a flat percentage (eg 7%) be charged.

 

Shopify reflects these uniform taxes in every state I have a nexus in, except for Texas. I should be able to charge my Texas customers an 8% uniform tax for any sales within the state. However, shopify is charging city, county, and state  taxes separately.

 

Not only is this an accounting nightmare, I am also non-compliant in tax filing, because my non-shopify sales are charged at 8%, while my shopify rates are using the more granular rates.

 

The only way I could figure out to get around this is to create a collection containing all of my products, and set the tax for that collection for the state of Texas to 8%.

 

This is a pain. Shopify should change their tax tables to reflect the uniform tax rate Texas allows.

Reply 1 (1)

mweitzel
Tourist
8 0 1

Ok. So I was wrong about the above fixing the issue. The "Product override" feature doesn't work at all. Instead of replacing the tax, it just adds it on top of the existing tax. What the heck.

 

texas tax.PNG

 

Because of Shopify, I am unable to be tax compliant for sales into the state of Texas. This is unacceptable.