Sales tax issues outside of my state not being applied! Help! Have tried all the suggestions so far

Solved
ResoluteCBD
Excursionist
18 0 6
Help!! My store is only charging sales tax to customers in Colorado. It’s on automatic but not working! Any direction would be appreciated!
Accepted Solutions (2)

Accepted Solutions
gseilei
Shopify Expert
235 28 41

This is an accepted solution.

Hi, have you checked on your setting taxes if you have any state override? or your tax regions have been set up properly?

 

If you want we could have a deeper look for you. Just write us at info@webmefy.com and we would love to help you.

We help you achieve your Goals! Visit us on: Webmefy.com

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Victor
Shopify Staff
Shopify Staff
1420 138 323

This is an accepted solution.

Hi @ResoluteCBD,

 

Thank you for getting in touch. Generally, the Shopify tax system will only charge sales tax to US customers in states where you have a presence that is inputted into Shopify's tax settings. I would presume that your store's address is based in Colorado, meaning that the system recognizes that you have a tax nexus here and is charging Colorado-based customers accordingly.

 

If you do not have a tax nexus in a state, you likely won't need to collect and pay sales taxes for orders placed from that state. A nexus is usually defined by having employees or locations in a state; we've more information on how this is defined here. We also offer a more comprehensive explanation of setting up US taxes on Shopify that you may wish to check out.

 

Do you have other locations or employees working in other states, or are you and your business only based out of Colorado?

 

Kind regards,

 

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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View solution in original post

Replies 26 (26)
gseilei
Shopify Expert
235 28 41

This is an accepted solution.

Hi, have you checked on your setting taxes if you have any state override? or your tax regions have been set up properly?

 

If you want we could have a deeper look for you. Just write us at info@webmefy.com and we would love to help you.

We help you achieve your Goals! Visit us on: Webmefy.com
Victor
Shopify Staff
Shopify Staff
1420 138 323

This is an accepted solution.

Hi @ResoluteCBD,

 

Thank you for getting in touch. Generally, the Shopify tax system will only charge sales tax to US customers in states where you have a presence that is inputted into Shopify's tax settings. I would presume that your store's address is based in Colorado, meaning that the system recognizes that you have a tax nexus here and is charging Colorado-based customers accordingly.

 

If you do not have a tax nexus in a state, you likely won't need to collect and pay sales taxes for orders placed from that state. A nexus is usually defined by having employees or locations in a state; we've more information on how this is defined here. We also offer a more comprehensive explanation of setting up US taxes on Shopify that you may wish to check out.

 

Do you have other locations or employees working in other states, or are you and your business only based out of Colorado?

 

Kind regards,

 

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
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ResoluteCBD
Excursionist
18 0 6

Thank you for all your help, I would suggest that anyone who needs Shopify help contact these guys! so helpful and prompt

ResoluteCBD
Excursionist
18 0 6

These guys are fantastic! Use them for any Shopify questions. 

R_Reno
Shopify Partner
13 0 0

Would like some additional help here.

 

We have an Economic Nexus in 46 States.  Only 12 of which require us to collect State, County and Local.  The other 34 States we only need collect the State Tax.

 

I've scoured the forums looking for a solution to this and I cannot locate one.  The Tax Override settings don't work for anything but a specific zip code.

 

Surely Shopify doesn't expect us to enter all of the Zip Code in every State to calculate an override.  There are 39,917 zip codes in the USA.

 

Does anyone have any suggestions.

ResoluteCBD
Excursionist
18 0 6
Hi,

I had the same problem! I got some help and what you need to do is enter each state as a physical presence, you only need to enter one zip code per state. It literally took me 20 minutes. I printed out a list of all states and zips and just put them in. I hope that helps’ and make sure “automatic is checked”

Resolute CBD
R_Reno
Shopify Partner
13 0 0

Resolute - 

 

I've entered one zip code per State and have all 46 set up.  But, for example, for New York we should only be charging the State Tax - not the County and Local.  I've entered a Tax Override for New York, but the override is not applying Statewide - it is only applying to the locality for the zip code I used.

 

Thoughts?

 

ResoluteCBD
Excursionist
18 0 6
Yes, I ran into this as well, I actually have no idea and have decided for now it’s ok, at least for me. I’ll have to see if they don’t generate. I don’t have the answer to that.....
R_Reno
Shopify Partner
13 0 0
Victor
Shopify Staff
Shopify Staff
1420 138 323

Hi @R_Reno,

 

Thank you for reaching out with your question. As @ResoluteCBD said, adding a ZIP code from the state in question should configure the taxes correctly. In terms of the New York issue you mentioned, do you have the "Applies to all counties and cities" option enabled for the override? I believe if you have this enabled it should apply this override on a state-wide basis.

 

Here's a screenshot of an example from my test store:

 

20-04-nbvfn-aa0n1

 

Please let know if it's still not working as desired once this option is enabled.

 

Kind regards,

 

Victor | Shopify Social Care

 

Victor | Social Care @ Shopify 
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R_Reno
Shopify Partner
13 0 0

@Victor

 

Thanks for getting back to me.  This is such a perplexing set up. Yes, and when the box is checked for "Applies to all counties and cities", the tax rate is overridden and charged flat across all State, County and Local taxes.

 

 Screen Shot 2020-04-03 at 4.32.30 PM.pngScreen Shot 2020-04-03 at 4.33.13 PM.png

 

Another thread that I read through suggested I check both the County and City Level.  This change nets the same result:

 

Screen Shot 2020-04-03 at 4.38.08 PM.pngScreen Shot 2020-04-03 at 4.41.33 PM.png

 

 

From what I'm reading, this is a major issue for everyone who doesn't have the Plus level and has multiple Economic Nexus requirements.

Victor
Shopify Staff
Shopify Staff
1420 138 323

Hi @R_Reno,

 

Okay, I see. To clarify, do you want all orders from New York to have the 4% state tax applied, but no county/ city taxes alongside it? And this would apply to orders from anywhere in New York state?

 

Kind regards,

 

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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R_Reno
Shopify Partner
13 0 0

@Victor 

 

Yes, as an Economic Nexus State where Destination-based Sales tax is collected, we need only collect State Tax.

 

Yes, 4% NY State Tax and no County/Local Tax for all orders in NY.

Victor
Shopify Staff
Shopify Staff
1420 138 323

Hi @R_Reno,

 

Thank you for clarifying that. I have just tested this on my own store and it seems to be working correctly—you can see here at checkout, only the 4% state-level tax rate as been applied:

 

20-04-ndeuu-0ib1p

 

I can check this is the backend too, in the Orders section. Both the county and municipal taxes were not charged:

 

20-04-rhp4s-tswmk

 

This is how I have the override set up in the backend:

 

20-04-8ko0t-4hjp8

 

Have you received real orders from New York-based customers since this override has been applied, and they've been charged too much tax? Or have you just been testing this? Also, if you'd be happy to share your store's URL here I would be happy to test this myself on the frontend of your store.

 

Kind regards,

 

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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R_Reno
Shopify Partner
13 0 0

@Victor 

 

Yes, we have overcharged several dozen customers before it was caught.  Please note the screenshots earlier in the thread - it is still charging all three levels.

 

We have 5 different Shopify Sites, but you are welcome to check it out on https://epure7cbd-com.myshopify.com/.

 

For now, I have NY set up as discussed.  I appreciate your help.

Victor
Shopify Staff
Shopify Staff
1420 138 323

Hi @R_Reno,

 

Okay, thank you. I just went to your site, added a product to my cart and proceeded to checkout. When I proceeded there, the 4% tax rate is all that is being charged:

 

20-04-oiink-ls3pp

 

$2.36 is 4% of $59 so it doesn't seem like any other taxes other that the 4% New York state tax is being applied.

 

Have you tried this yourself? Are you seeing the other tax rates show?

 

Kind regards,

 

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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R_Reno
Shopify Partner
13 0 0

@Victor 

 

Just did.  Went to the site to place an order as a customer.  Also set up a draft order - both with the same result.  I'm not sure why we are getting different results.  

 

Live Cart:

 

Screen Shot 2020-04-07 at 11.39.44 AM.png

 

Draft Order:

 

Screen Shot 2020-04-07 at 11.35.52 AM.png

Victor
Shopify Staff
Shopify Staff
1420 138 323

Hi @R_Reno,

 

Okay, thank you for sharing that. I'll need to take a closer look at this and to do that you will need to be authenticated on the account. As such, it's best that we continue this discussion over email. I will send an email to the email address tied to your forums profile—please look out for that and reply to me there.

 

Kind regards,

 

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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ResoluteCBD
Excursionist
18 0 6
I have actually figured this all out, thank you so much for your help!