Shopify calculates wrong tax on checkout

Shopify calculates wrong tax on checkout

1 0 0

According to an older thread, the shopify checkout calculates the tax using this formular:


Tax = (Tax Rate X Price) / (1 + Tax Rate) 



Buy why? Is there a reason why they do this?


All it want is: 


Tax = Tax Rate X Price



Any help is very appreciated!

Replies 2 (2)

Shopify Staff
2494 456 415

Hey @BenjaminK232.


Thanks for reaching out.


This is a great question! At this moment, we are unable to make changes to the way taxes are being automatically calculated depending on your store location when completing the checkout. However, you can create a Tax override or exemption if you would like to control how much tax you charge for a particular product or specify unique tax rates for shipping destinations.


With that being said, I can certainly see the benefit of allowing you to set up your own formula to automatically calculate taxes so I am going to provide this as a suggestion to our developers.


You can set up a tax override for a specific collection by navigating to Settings > Taxes and Duties > Location > Add Product Override. I took a screenshot from my test store of the section I am referring to:




Let me know if you have any additional questions.

Ollie | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

2 0 1

Hello Ollie,

I have the same problem with many of my invoices. Bookkeepers are making me crazy. Can you please find a solution asap.
On an amount of 1000,- euro the deafferents is about 0,10 cent.
It is to much time to check and change every invoice.

Please let me know what solution you have.
Kind regards Marloes Bruijn

PS: I'm in Holland with tax of 21%