Hi,
I used to have a flat shipping rate ($ 15) set for Canadian domestic orders, sales taxes would automatically apply to the shipping rate. I’ve deleted the flat shipping rate and directly used Canada Post calculated rate. For some reason, the sales taxes will apply to the real-time Canad Post rate plus the original flat shipping rate…resulting in overstated sales taxes. For example:
Purchase amount: $ 138
Real-time Canada Post shipping rate: $ 10.78
Sales taxes (5%) calculated: $ 8.19
Total order value: $ 156.97
Sales taxes should have been 5% x (138 + 10.78) = $ 7.44
The $ 8.19 resulted from 5% x (135 + 10.78 + 15).
Not sure why the $ 15 are included in the calculation, as it has already been removed from my shipping rate settings. Anyone had a similar issue?
Screenshot from my test order:
Thanks in advance!
Hi, @Youhe_SC !
Welcome to Shopify Community.
I’d love to help you troubleshoot this further and resolve the issue sooner than later. Your calculations certainly do make sense, but another possibility is a rate that is different than 5%.
While playing around in my test store, I was able to recreate this scenario with the 5.5% tax rate, so I’m hoping to rule that out with you first. Please provide me with the following information:
- your store URL
- example address/province you are using for testing purposes
- a screenshot showing your current tax rates for said location
I would be glad to do some further testing and I’m sure we can sort this out together.
I look forward to your reply,
Hi Olivia,
Thanks for your quick reply!
I set my sales tax rate at 5% for Ontario (the province used in the test order I posted above) using the sales tax overriding function - but I did have questions when setting up the rate so the setup might be incorrect. I’m selling children’s clothing which is only subject to GST or the GST portion of HST for HST-charging provinces.
Here is the requested info:
- Store URL: youhe.ca
- Example address used: 4452 Toy Avenue, Pickering, Ontario L1H 7K5
- Screenshot of current tax rates:
I was a bit confused about the tax overriding setup - I thought we needed to enter the actual tax rate to be charged, but for some reason, the BC calculation only works if I enter 0%. Would appreciate it if you could shed some light on this as well!
Many thanks!
Shelly
Thanks for following up, @Youhe_SC !
While the rate shown in your screenshot looks correct, there were definitely some bells that went off when you mentioned you are using tax overrides on your store.
Tax overrides can be applied to certain products or shipping charges and should only be created if you require unique tax rates for said jurisdiction. It makes sense then that you are using this set-up, however, it’s also very possible that there were some mistakes with the creation of them.
Without further access to your shop it’s tough for me help diagnose the root cause so I’d like to invite you to connect with our Support team at this time to look into the back end of how your overrides are working.
We look forward to supporting you,
