Why isn't tax being charged on my product orders?

Accounting & Taxes
1

Hello,

For some reason, when a customer places an order on my site, the product isn’t taxed even though I have “charged tax on this product” enabled, and the tax amount shows in the checkout total.

I’m also collecting sales tax from Michigan and have “charge tax on shipping rates” enabled.

This had happened on 3 orders so far. Advice?

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2

@CosyG

Hmm, that is strange! Are there any differences between the locations of your customer and the test order you set up? Even though you have the option to charge tax on the product, if you do not have taxes set up to charge for certain locations (Settings/Taxes) then the tax won’t apply.

Let me know what you find out!

3

Hi @CosyG ,

Usually, there are three possible causes as to why taxes are missing from your orders and invoices.

  • The country tax rate is not configured correctly.
  • The product is not set as taxable.
  • The customer is set as tax-exempt.

Please, find more details in our article regarding missing taxes on Shopify orders and invoices.

- Max from Sufio