International Orders - Taxes Applied ONLY to Shipping?

International Orders - Taxes Applied ONLY to Shipping?

toysubscription
Visitor
1 0 0

We are a US-based company, and ship to over 40 countries around the world. Our payment and tax stacks is Shopify Plus, Recharge, and Avalara. Here's the problem:

When a new international visitor comes and signs up for, say, a quarterly subscription (we re-bill them every three months), the INTIAL order is just fine. Taxes and duties are properly applied to the total amount (purchase price + shipping fee). However, for all subsequent re-bills (e.g. month 4, month 7, etc.), taxes and duties are only applied to the shipping fee (not the purchase price).

Anyone encountered this before? Shopify, Recharge and Avalara have not been helpful. And we have triple checked all our settings. Thanks for any ideas!!!

Reply 1 (1)

rajimulislamjoy
Shopify Partner
421 41 74

@toysubscription  It sounds like a complex issue related to how the tax and duty rules are being applied in subsequent billing cycles. This may be due to how Recharge is handling recurring charges. One approach is to check if Avalara is recalculating taxes for each re-bill. You might need a custom solution or third-party app to ensure consistent tax application. Consider consulting with a Shopify Plus partner or a tax expert who can dig into the specific setup of these tools.

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