We mostly use Shopify POS. In February, it suddenly changed our sales tax rate from 8% to 5% with no notice or reason. We caught the issue when we were filing Februrary sales tax on March 20th when they were due. I called, and they said there was no way to adjust it to collect the correct amount. A week later I called again because it still wasn't fixed, and they told me this time that I could do a sales tax override on a product "collection." We did this, but by then shopify had failed to collect $6,000 of sales tax that should have been collected that I had to pay to the city and state out of pocket.
Months later they reached out saying that the sales tax should be updated. I kept everything in the sales tax override collection though due to fear of this happening again.
Last week I opened an additional location in a different city (Aurora, Colorado), and the issue is that they have a different sales tax rate. I deleted the sales tax override collection to see if the issue was fixed like they said it was, and it STILL is not collecting the right percentage of sales tax for Parker, Colorado. The sales tax override on the product "collection" applies to all locations and online sales. How am I suppoused to collect sales tax for different locations at different sales tax rates with this issue?
I have also been trying to get reimbursed for the $6,000 that I had to pay out of pocket since shopify has admitted that it was not my fault and was an error on their end, but they always say they will get back to me and never do.
This is becoming an extremely costly glitch to my business. Why is it not possible to manually set sales tax for physical locations? This is ridiculous. And it is impossible to directly talk to the sales tax team, you just have to hope that they get back to you eventually one day.
I see your post and I think that An unexpected change in sales tax rate, lack of communication, and failure to collect the correct amount resulted in significant financial implications for your business. Despite their promise, the problem persists, affecting your new location's tax rate as well. May be this help you for get reason why you get face a problem.
Same problem except they are charging the tax initially for me then refunding 100% of the taxes!!!! I reached out over weeks to get this fixed and I keep explaining the problem to new people but they never help and eventually they just end the conversation saying there is nothing they can do. I am appalled by this!! Btw I am using the site to charge for pet services (walking and boarding in NY)