Hello, I noticed that ‘Include tax in prices’ checkbox under Taxes & Duties is checked. Is it automatically checked or does it require human action? I wouldn’t have checked it, so I’m wondering.
Since I didn’t check it, I didn’t add taxes to the prices in the store. Tax was charged anyway, so that’s good. However, a customer in another state was charged tax in checkout. The order was going to my state, but I don’t think that determines the tax charge(?), the location of the buyer does. Perhaps it’s because of that setting being checked?
I am going to uncheck it, just want to understand what’s going on. Thanks!
I don’t believe this setting (“include tax in prices”) has anything to do with whether you’re charging taxes or not. It’s for how you want to list the taxes.
“If you enable this feature, then the tax is calculated by using the formula Tax = (Tax Rate X Price) / (1 + Tax Rate). You and your customers will still see the tax as a line item, even though no taxes appear to be added. The subtotal and total will be the same, but the amount of tax you need to remit for an order will also be indicated.”
For actually charging taxes, you’d need to setup your tax settings (Admin > Settings > Taxes and duties > Click into the country/region you want to charge for). The countries/regions shown in this list are based on the ‘markets’ you have set up.
Thanks, Stephen. I’m set up with Shopify Tax, so I’m good there. It was actually a two-part question I muddled. Is the Shopify default for that setting off/unchecked - in other words, ‘don’t’ include tax in the price? Apparently, I had a few orders go through with it checked ‘on’ to include sales tax in the prices and have to eat some sales tax since I hadn’t added the sales tax amount to the retail price.
My other point about tax being charged on location of charge, I had backwards, it’s based on shipping destination, which makes sense. Thanks!
