Tax override not working

ShallWeKnit
New Member
1 0 1

Store in Ontario Canada.  We charge HST 13% on everything but Books (GST only 5%).

I added our tax account number

I created a manual collection (GST Only) and added a few of our books to it.(They are also in out "Books and Magazines" Collection(Auto))

I then created a Tax exemption for Canada for for the manual collection, put 5%  and saved it - all by the book per the instructions

I then "purchased" one of the books in that collection - at check out it applied the full 13% tax not the 5% tax.

Is this functionality broken? Did I do something wrong or is this function not available to the basic Shopify level?

Bastion
New Member
1 0 1

I have the exact same problem!

Shawn_Wernig
Shopify Partner
2 0 1

I am wanting to do the same - followed the instructions here to the same result as you. GST and PST are still being applied. The Tax Override is not being used.

My Setup;

  • New Manual Collection called GST Only
  • Added products to the GST Only Collection
  • Added a Tax Override for my Canadian Tax Region using the GST Only Collection with a rate of 5%
  • Add said product to cart, proceed to checkout, ensuring I enter my address per the Tax Region the Override is set in, and BAM 12% tax (GST + PST).

Appears that Tax Overrides are not working. 

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Shawn_Wernig
Shopify Partner
2 0 1

I solved this problem by adjusting the Tax Override Rate.

In my case I wanted some products to be PST exempt. Instead of setting the tax rate to 5%, I set it to 0% and it's now only applying GST. 

I don't understand the logic, but try using 0%.

NoName30
Tourist
6 0 3

I hope this will help someone:

When I set up my store in Dec. 2020, I created tax overrides for my automated Book collection.  HST provinces at 5%, PST/RST provinces at 0%.  It worked well, until this month (Jan. 2021), when it was completely wiped out.  No warning.  Customers were now being charged the full tax.

I have tried recreating the tax override for the Book collection, but the system will not allow me to do a tax override of any automated collection now.  

So I created a manual collection I called Books-Manual Tax Override.  Went to products and filtered to all my Book collection.  Selected them en masse and added them now to my Book-Manual Tax Override collection as well.  

Then created Tax overrides for each province that has HST or PST or RST:
British Columbia: 0
Manitoba: 0
Saskatchewan: 0
New Brunswick: 5
Newfoundland and Labrador: 5
Nova Scotia: 5
Ontario: 5
Prince Edward Island: 5
Quebec: 5

I tried it out, and it seems to be fine.  Just have to remember that each time I add a product, I add it to the Books-Manual Tax Override collection as well. 

We will soon be selling other items that are also PST exempt.  How fun it will be setting these all up!  

I'm crossing my fingers that my tax overrides will now stay put and are not just wiped out by the system.

 

Crywolf
New Member
1 0 0

NoName30, your suggestion worked - thank you!! Seems so silly that we have to do a workaround to get an override to work. Hope that gets fixed!

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NoName30
Tourist
6 0 3

Glad it helped you out!  Don't hold your breath for a fix - seems Shopify Canada should hire an accountant for advice... LOL

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justineverett
New Member
2 0 0

This is the correct answer although unintuitive.

You are not overriding the total tax rate for a product to its final rate, but rather overriding the individual region's tax rate.

So to remove PST, you select the province for which you don't want it to apply and then set that rate to 0%. This leaves GST to be charged.

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TheWhiteWizard
Tourist
4 0 1

I don't know how you calculated the 5's and 0's, but they do practically work when I do the provincial math at checkout. Could you elaborate how you made this calculation to aid us in case provincial rates change in the future? Thanks for your help.

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NoName30
Tourist
6 0 3

Well, provinces that are not under the HST system, but rather administer their own provincial taxation collection will be 0.  Provinces that collect HST, will be the going GST rate (currently 5%).  So only needs adjusting if a province changes to become HST, or if the GST rate changes.   Shopify should adjust the provinicial taxes automatically I would think.  In order to be charging them, you need to have your sales tax ID numbers put in under Settings, Taxes, Canada - Manage, Sales Tax Collection - Collect Sales Tax.

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