Why is my sales tax calculation incorrect on Shopify?

Why is my sales tax calculation incorrect on Shopify?

dugoutsportsva
Visitor
1 0 0

My taxes are not being calculated correctly by Shopify. VA sales tax is 5.3% (4.3% to the state and 1% to the county). Example I just made a $250 sale (tax included) and it only calculated $12.58 as the tax bill ($10.21 to state and $2.37 to the county). Tax bill should've been $13.25 ($10.75 to the state and $2.50 to the county). Obviously this is going to mess up my paperwork because at the end of the month when I go to pay the tax bill I am going to pay more than Shopify thinks I paid.

Reply 1 (1)

gerald_z
Tourist
6 0 4

The Shopify calculation is correct.  You are calculating 5.3% on the total amount which already includes the tax!