How to Setup Your Sales Tax Rates in Shopify

There are really times on where we need to charge taxes. Sometimes we need to report and remit those taxes to your government. Though we don’t see it right away, we are benefiting from it. Although tax laws and regulations are complex and can change often, you can set up Shopify to automatically handle most common sales tax calculations. You can also set up tax overrides to address unique tax laws and situations.

 

Please be advised that Shopify doesn’t file or remit your sales taxes for you. You may need to have your business registered with your local or federal tax authority to handle your sales tax. What you can do with Shopify is that you can use their calculation and reports that it provides which makes it easier.

 

You should always check with a local tax authority or a tax accountant to make sure that you charge your customers the correct sales tax rates, and to make sure you file and remit the taxes correctly.

 

Setup Your Sales Tax Rates

1. Access your Shopify Admin. Visit http://www.shopify.com.

shopify-login

 

2. Once you’re in, click Settings located on the bottom left of the Shopify Admin and select Taxes on the grid.

1 settings-taxes 

You should reach the Taxes page. This is where you can freely change your taxes.

 

3. On the Tax Settings section, there are 2 checkBoxes. First one is to apply taxes to all of your prices. The second one is if you wanted to apply taxes on your shipping rates. Just click the Save button to finalize your setting.

2 tax-setting

 

The Tax Rates section is where you can freely set up your tax rates.

3 tax-rates

 

Rest of the World

4. Click the Rest of World link to access the Country Tax.

 

5. Change and set your flat percentage rate for your country tax. This is if you are shipping outside of the United States. Once you set your rates and save the changes, A pop-up will appear at the bottom for the confirmation and changes will be applied right away.

4 rest-of-the-world

 

6. You can also add a tax override. This is if you wanted to add customized region-based tax rates for specific product collections. Just click the Add a tax override link on the left.

 

7. Choose between Products and Shipping, Select a Collection or Create One, Set your tax rate and click the Add Override button.

5 add-tax-override

 

You should your created override on the list right away. If you wanted to delete the override, just hover your mouse to it and click the Trash icon on the right then click Delete button to confirm.

 

United States

8. To setup customized shipping here in the United States click the United States link in the Taxes Rate section.

 

9. If you wanted to make your life easier, put a check on the Calculate taxes automatically and Shopify will do the computation for you. It changes accordingly if there is an update or change with the tax rates.

6 united-states-tax

 

10. If you want it to customize it, then uncheck the automation and set your tax rate for each state. Label the type of tax and choose the setup that you wanted to have.

7 us-manual-setup-tax

 

11. Once you are done with any changes, don’t forget to click the Save button.

 

So that’s it! Those are the things that you need to know about setting up your sales tax rates in Shopify.

 

 

Want us to walk you through it? Watch the video here!
 


 

 

Do You Want To Expand Your E-commerce Business?

If you want to expand your e-commerce business on different platforms, check out our other E-commerce Tutorials.

Just to let you know, we have a couple of experts who have excelled in E-commerce and are willing to share their knowledge. You can out check their blogs at https://sellerschoice.agency/blog/

If you want to hear them live, just sign up for our webinar.

 

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