Why isn't sales tax being collected on customer orders?

SweetJulesVegan
Visitor
2 0 0

I have Shopify set up to collect sales tax in my state and each product has the “collect sales tax” box checked. When I create a manual order, tax is automatically added in. But when a customer does it on their own through my store, taxes aren’t being added. What’s the deal here? I’ve had a bunch of sales this month and I’m going to have to dish out the tax on my own due to this error.

 

Any ideas?

Replies 9 (9)

StephensWorld
Shopify Expert
1373 167 338

My initials thoughts are that one of the following issues are occurring: 

 

  • not all of your products have the 'collect sales tax' box checked within their product settings (note: each individual product variant has it's own checkbox for charging taxes, so for products with multiple variants, you'd need to make sure each variant has taxes enabled). 
  • the customers purchasing from your site aren't from the location that you've set up taxes for. 

 

If you can provide some screenshots of your settings, as well as a link to your store, then I'd be happy to take a look and test your checkout, to see if it's working on my end. 

 

Also if you could provide a screenshot of an order where taxes should be charged, but aren't being charged (with the customer's name, email, phone, and street address blurred out -- so we only see the product purchased + city/state/country of the order + order totals), then that would also help with troubleshooting the issue. 

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https://stephens.world
support@stephensworld.ca

Lcordova37
Visitor
1 0 0

I've noticed mine is doing this too. How do I fix this?

PrestinMyles
Tourist
3 0 1

What's also inconsistent about this tax error on Shopify is that All established products are charged tax upon check out. With Custom Draft orders, it simply will not add tax unless you add the state/region of your customer into your Nexus list...

 

Can anyone please address this!?

lynnfox
Visitor
1 0 0

Just helping folks. I'm confused as well and Shopify should have a better experience developed: As a company owner or website designer I need to know that my taxes are not being charged and configured before I hit a threshold so that I'm not panicking that I'm breaking the law.  This should be on the initial taxes section. "For US taxes, [accurate description of expected behavior]"  https://help.shopify.com/en/manual/taxes/us/us-tax-liability#threshold-periods

Erin
Shopify Staff
969 129 154

Hi, there! You can find the most accurate information on how to set up your taxes with Shopify's settings in the Help Center. The page you linked is specifically about US tax liabilities, but if you're looking for a general overview of US taxes with Shopify, this page here will be more helpful. You may also want to take a look over this guide on how to set up your taxes in Shopify

 

Since tax liabilities and obligations vary depending on the specifics of each business and where they're located, we can't share any guidance on your legal obligations. However, we can help review your settings to ensure they work as you expect them to. We can also look into any unexpected issues you're noticing. You can reach out to our support team for help through the Help Center here. We also always recommend speaking to a local tax expert to help you ensure you are collecting taxes correctly for your business.

Erin | Shopify 
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PrestinMyles
Tourist
3 0 1

I am with you, Just realized no one is being charged tax out of state... I just spent 2 hours with support trying to figure it out. None of the articles help, the best thing to doo is talk to a tax professional and verify which states you can add to your nexus list. This list is found in your Taxes and Duties tab under Settings. What I found out is that I need to talk with my Tax Advisor (not Shopify) to add each state available for taxation...

 

jadenrose
Visitor
1 0 0

Having the same problem. My store has charged sales tax before, and now is not. All of the steps mentioned above are correct in my store too. What's happened?

PrestinMyles
Tourist
3 0 1

I am glad I am not the only one experiencing this issue at least... 

Cmatias
Tourist
3 0 2

Anyone found an answer to this?