Sales Tax on Shipping Fees only charged on Draft/Manual Orders

Hi!

Something weird is happening when I create/ process an order manually. It is charging sales tax on shipping fees even though here in Puerto Rico the shipping charges are exempt.

https://help.shopify.com/en/manual/taxes/us/us-tax-reference#puerto-rico

I tried to override the sales tax on shipping; but it doesn’t work.

https://help.shopify.com/en/manual/taxes/tax-overrides?utm_campaign=Guru_+_Ask&utm_medium=Forum&utm_source=Social#override-the-taxes-on-a-collection-or-on-shipping-charges

Also, under settings, taxes and duties, Charge tax on shipping rates box is uncheck.

The issue is only under manual orders; orders processed directly through customers are correct. There is no sales tax on shipping fees .

Please Help :slightly_smiling_face:

Hi, @H4P .

Thank you for reaching out and posting this question!

I understand that you’re having an issue with sales tax when creating draft orders. While I’m unable to look over your tax settings on the Shopify Community, I did notice that the tax calculated more accurately when I enter the customer’s details first before adding any products or shipping rates to the draft order. Can you check whether adding the customer’s details first can help resolve the taxation issue in the manual orders?

If the issue continues to persist, then it looks like we’ll need to access your account in order to resolve the issue. While we’re not able to provide account-specific support via the Shopify Community at this time, we’d be happy to continue assisting you through live chat, email, or callback. Please visit the Shopify Help Center and log in to your account to create a support request.

I’d love to hear more about your business! What kinds of products are you selling? Do you have a marketing plan prepared for your store?