I am an online retailer, that lives in the county vs the city. Prior to the sales tax upgrade/update in January, we were charging customers sales tax based on my zip code to the closest city sales tax rate which equaled 8.25%. Now we are charging the sales tax rate correctly based on my location and zip code including the four-digit rooftop sales tax location. My question now is that when we ship out products to other locations within Texas we are charging some customers the difference in sales tax based on my location and what I think is a use tax for the destination zip code if we can apply the additional sales tax rates that equal the 8.25%. Very confusing and I can not get a straight answer from Shopify that yes the additional amount is the use tax for that customer. TaxJar, third party, reports don't match now and show that I am collecting additional taxes that should be returned to the State of Texas. Trying to see if anyone else is having this problem. We can not find any settings within Shopify that would indicate we chose this option...... Thank you for any feedback.
Shopify's response is giving me this reference page
Moira | Social Care @ Shopify
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Thank you for your reply. I do have an automation service, TaxJar, as I stated in the question in which I also have my second work order put in with them on this issue. My tax professional also questions why Shopify is collecting additional sales tax based on the location I am shipping to within my state. I am located/based in Texas, and this is my primary location, making Texas an Origin Sourcing when sold within Texas. Again this only changed with this year's new tax upgrade in January.....still looking for a better resolution. As of now, TAXJAR, states I am over collecting. Still seeking a better resolution.
Were you able to get a solution? I am also encountering the same problem with taxes being collected. It randomly charges sales tax to customers shipped to within the state of Texas. We also live in the county and I have verified with the State of Texas that only the 6.25% should be collected. For now, I am reporting and paying the taxes collected, as charged to customers' orders placed on Shopify.
Is there somewhere to override the sales tax rate? Shopify said it was possible to do but would somehow have to be done on each inventory item, not sure how.
When I contacted Shopify they also told me what Shopify told you in March. I also have confirmed Texas sales tax is based on sale Point of Origin not vs Point of Delivery.
Thank you in advance for any assistance you may be able to provide!
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