Remove tax being calculated on shipping from draft order

Accounting & Taxes

Topic summary

A user is experiencing an issue with tax being incorrectly applied to shipping costs on draft wholesale orders created through the “Wholesale Pricing Discount” app.

The Problem:

  • When adding a custom shipping rate to draft orders, Shopify automatically charges 13% provincial tax on the shipping cost
  • This creates double taxation since the shipping quote already includes all applicable taxes

Attempted Solution:

  • The user has already unchecked “Charge Taxes On Shipping Rates” in Shopify Settings > Taxes and Duties
  • Despite this configuration change, the draft order page continues to apply tax to the custom shipping cost

The user is seeking suggestions to prevent this unwanted tax calculation on shipping in draft orders.

Summarized with AI on November 23. AI used: claude-sonnet-4-5-20250929.
1

Hello all!
Thanks for taking the time to read my problem!

I have this app installed called " Wholesale Pricing Discount" to make draft wholesale orders. The issue arrises when I’m trying to add my custom shipping rate to the draft order and my Shopify store is charging my provinces tax @ 13%. Because I have already received a shipping quote from my shipping company I don’t need to apply any more tax. I’ve already went into Shopify → Settings → Taxes and Duties → unchecked Charge Taxes On Shipping Rates.

The draft order page is still charging tax on my custom shipping cost I put in. Any suggestions?

Thanks,

Rebeccah.