Hi! Yes, that drives me crazy too! It still seems a bit of a mystery but this is what I have figured out. When I connected my Shopify Extractor, a popup populated for me to agree to. I took a screen shot of it and added it below. It is an explanation of what happens to the differences in tax. It says that basically we (the business) always pay on the highest rate. If our customers is charged tax by Shopify and Ava calculates a higher tax rate then we remit the higher rate to the state. If Shopify charges a higher tax and Ava calculates a lower tax, Ava still remits the higher rate to the state because that was what was collected from the customer. So as a company we are always paying whichever the highest taxes rate is that was calculated. That means our company is paying for the extra tax that was not collected from the customer by Shopify which is an added expense. It also means Ava is remitting the extra tax that was collected by Shopify when the customer over paid the tax which is great. It would be a problem if we collected too much tax from the customer and it wasn’t remitted to the state even if it’s just pennies. So that part is good. I was told by Ava phone support that what extra we pay in tax that was not paid by the customer is refunded back to us on our next return but I don’t know that for sure.
Hope that helps.
