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Re: Sales tax calculation options needed for Shopify POS

Sales tax calculation options needed for Shopify POS

bcwaccounting
Tourist
4 0 4

I am looking for a solution to a tax collection problem I'm having with Shopify POS, which I believe could be solved with any one of three solutions:  1) Integration of Shopify Tax into the Shopify POS, 2) Ability to set local tax rates in the Shopify POS, or 3) Ability to associates tax overrides with a particular location, as opposed to having them override the entire store.  Are any of these available, or planned?

 

We're located in the US.  We use the Shopify POS for our physical locations, which account for roughly 90% of our sales.  Shopify POS currently does not support Shopify Tax, but uses Basic Tax instead.  This means ZIP code-based tax tables are used, which causes us several problems:  1) special tax district rates are not charged since they don't apply to the entire ZIP code, 2) rates that vary depending on item categories, such as food, are not charged properly, 3) if the ZIP code straddles tax jurisdictions, then the tax rate at the local Post Office prevails.

 

We sell unprepared food products, sometimes at Farmer's Markets.  When we're at a location with a special tax district, we're out of compliance.  We're located in Kansas, where groceries (97% of our sales) have different tax rate than everything else, so product categories matter.  Our brick-and-mortar location is on the other side of the county line from our post office, so Basic Tax puts the wrong county name and rate on our receipts. 

 

Since such a large part of our business is in a single brick-and-mortar location, I have set up tax overrides to charge the proper tax rates on our local sales.  As a result, I'm now charging our local tax rate on all of my taxable website sales, which means I'm collecting the wrong rates on all of those.  Now, we're planning to open a second brick-and-mortar location, which will have different tax rates than our first location (and is in a special tax district).  

 

Is there a plan to integrate the Shopify POS with Shopify Tax?  I believe this would solve this entire issue, as it addresses location, product categories, etc.  What's that timeline look like?

 

Alternatively, is there a way to set a tax override for a specific POS location, and not for everything in our whole store?

 

Or, is it possible to set specific tax rates in the Shopify POS for that POS location?

Replies 6 (6)

bcwaccounting
Tourist
4 0 4

How about it?  Is there a plan to integrate the Shopify POS with Shopify Tax?  If so, when?

terragames
Tourist
4 0 1

Did you find a solution? I'm having the exactly same problem. Shopify Tax when enabled doesn't calculate the county TAX and it assigne the wrong county all well.

ConsultingSide
Tourist
3 0 2

Similar problem that would be a great solution. We have two problems.

 

  1. Taxes are broken down into multiple line items for city, state, municipality etc. No retailers do that here and it causes endless problems with a sale.
  2. We have multiple store locations and would like to use shopify POS. We also want to have different prices at each location and online store. Not an option. This is ridiculous if you are a large retailer. 
terragames
Tourist
4 0 1

I spent hours with the support; they said Shopify has a limitation on their Shopify Auto Tax calculation, which for me, wasn't calculating the County Tax. After days of back and forth. I canceled Shopify POS and adopted SquareUP, which immediately worked for me.

KellyP_RindLdy
Tourist
10 0 5

Was your issue ever resolved?  I use Shopify for e-commerce as well as our brick & mortar in Kansas.  There are new tax laws in 2023 where some grocery is fully taxed and others are not.  I am told I can override the tax but It's still not working correctly and none of the paid help on Shopify will touch the tax issues with a 10 foot pole. If this cant be resolved I'll have to cancel my use of shopify POS and find a new source for our brick and mortar. 

Kelly@PerrysPorkRinds.com
(620)939-4300
Perry's Pork Rinds & Country Store
702 Pine Street Bronson, KS 66716
terragames
Tourist
4 0 1
I never endup using Shopify, their Tax calculator doesn't work when customizations are needed at the city and county level.