Hi, @Shaipm !
I’m Miles from the Social Care team at Shopify. Whilst I won’t be able to provide information on what tax amount is correct, I can certainly guide you around setting up the tax information.
Setting up taxes is based on tax registrations for the following regions:
- United States
- Canada
- European Union
- United Kingdom
- Norway
- Switzerland
- Australia
- New Zealand
If you’re not based in one of these regions and you need to charge taxes, then taxes are applied at the country or regional level, depending on your local tax laws.
Follow the links in the steps below for more detailed information:
- If you’re running an online store, then set up the countries you will be shipping to.
- If you’re using Shopify POS to sell in person, then set up the tax rates based on your retail locations. The default POS tax rates are based on the geographic location in which your in-person sales take place.
- Set up the tax rates in the countries and regions to which you will be selling and shipping your products:
- If you’re in the United States, Canada, the European Union, the United Kingdom, Norway, Switzerland, Australia, or New Zealand, which use registration-based taxes, then enter your tax registrations to collect tax.
- If you’re in a region that uses location-based, then use the default values or specify the rates for countries and their regions. In addition, specify whether you will charge taxes on shipping.
- If you sell digital products, then set up the taxes that apply to these items.
- Override tax rates or exempt products from taxes where necessary. Any overrides that you set apply to online sales and to Shopify POS sales.
- As you set up taxes, you can access and review your settings on the Taxes page in your Shopify admin.
If something isn’t calculating correctly after following these steps, then you would need to speak to a local tax professional to ensure everything has been set up correctly.