How to apply taxes at checkout for US, Canada, Australia, and New Zealand?

46 0 10



May I ask for your help regarding on how to set up taxes to US, Canada, Australia, New Zealand and the like at the checkout section. I am a drop shipper selling apparel outside of these countries. 


I indicated the percentage tax from other countries, and they were reflected at the checkout section. However, with the countries mentioned above, they did not. What must I do? Are there any solutions to add the same percentage tax to these countries?

Thank you in advance.

Replies 3 (3)

Shopify Partner
3818 715 1132

Hi @ninja_nthgrade,


Taxes on those areas are only applied if your buyer are on those area. Can you share your website so I can check as well?

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46 0 10

Hello @made4Uo 


Thank you for the reply. Yes, but will the buyers on those countries still pay for local taxes? even if taxes are included during checkout?


Here's the link of my website.

Shopify Staff
2455 226 523

Hi @ninja_nthgrade,


Shopify's automated tax system will apply or not apply sales taxes to your orders based on the information you have provided in the Taxes section of the Shopify admin, as well as the customer's information. The four countries you have mentioned have registration-based tax settings within Shopify, meaning you need to provide a registration number in the Taxes section in order for sales tax to be calculated correctly at checkout for customers in these counteies.


You will first want to determine whether you are required to charge sales taxes in each of these countries, and for every other country and region you sell to. For the United States tax registration occurs at the state level, so you'll want to determine your liabilities for a tax perspective in each state that you sell to. We offer comprehensive guides on setting up sales taxes for both the United States and Canada.


If you're just starting out and do not have a physical presence in a country, region, or state that you are selling to, then you may not be required to register for sales taxes yet and your customers there would therefore not need to pay sales taxes yet. However, it's good to understand when you will be required to register in every place that you sell to. If you are unsure about this, we would always recommend to speak to a tax professional to clarify your responsibilities.


If you're based in the United States, you may also wish to consider Shopify Tax. This feature provides sales tax liaibility insights and rooftop accuracy with precise location technology to ensure you are charging the most accurate rates of sales tax possible to your US customers. You can use Shopify Tax without charge for the first $100,000 USD of US online sales each calendar year.

Victor | Social Care @ Shopify 
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