Shopify Finacial Reporting on Discounted Orders

Accounting & Taxes
1

Hi,

We have a Brick and Mortar and use shopify for both online and POS.

We tend to have customers that trade items in for store credit.

Since shopify doesn’t have this built in we do this manually. (Which sucks btw, but beats paying for an app)

So my question is when a customer buys a product for $100 and uses $100 in their store credit we discount the order at 100%. The Order becomes $0 and we fulfill the order.

So my question is:

How does shopify report this order on our tax report?

Does it get reported even though the order was $0 and we don’t exchange any cash?

Thank you

2

Shopify’s tax reports use the tax collected at sale. So if no tax was collected on the discounted transaction, then no tax will be reported.