Why isn't tax being calculated on draft orders?

Shopify Discussion
1

Hello Shopify Community,

For one of our customers, we did not set tax exemptions in the customer profile. When we create a draft order for them, the tax rate is listed as “tax not calculated”.

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And this customer has the address same as our webshop location, so the VAT should be charged.

We don’t understand why the tax rate is not calculated on the draft order. Please advise if you have any ideas.

Thank you in advance!

2

Hi, @sandyng !

I’m Miles from the Social Care team at Shopify. Thanks for your question about taxes. I’ve tried to replicate this issue for you in a test store, and I can see taxes are charged via draft orders. With that being said, let’s try to work out why this customer isn’t being charged tax at the moment.

  1. Have you selected a customer in the draft order already?
    • If not, you can add a customer to the order on the right-hand side.
  2. Are all your products set up to charge taxes?
    • To check this, head over to the Products section of your Shopify Admin. Then select all products and click “Edit products”. This will present you with a bulk product editor. Click “add fields” at the top and select “charge taxes”. From there, you can check which products are charging taxes and which ones are not.
  3. Are you collecting taxes in the country your customer is based?
    • Head over to Settings > Taxes to view a list of countries you ship to. Next to each country, you’ll be able to see if you’re collecting taxes for each country that you’re required to. Whilst we cannot provide tax advice, I recommend checking out our guide on taxes to learn how to add them correctly.
  4. Do you have any tax overrides set up?
    • Under Settings > Taxes, click “manage” next to the country in question and scroll down. You’ll see a section for tax overrides that you can edit.

If all of the above is set up correctly, there may be an issue that we need to look at on your account. It looks like we’ll need to access your account in order to resolve this 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 https://bit.ly/3cJkx8V and log in to your account to create a support request.