Configure Sales Tax

Using the information provided by the New Site Information form stored within the project, we need to configure the sales tax rates for the client store.

Tax Settings

First, we need to configure the manner in which Shopify calculates taxes on a store.

1. Go to Settings > Taxes.
2. Make any appropriate selections required.

In most cases, we would not select to include taxes in the prices of products or tax shipping. However, this is driven by any client requirements.

Tax Rates

Tax rates are fairly simple with Shopify. For all countries into which you have set up shipping, you will see corresponding countries shown in the list of Tax Rates.

In the US, tax rates are based on where the customer has a "physical" location. That is, if a client has an office in Texas and a warehouse that ships their products in Arizona, then, for sales tax purpose, they have a physical presence in Texas and Arizona. Therefore, both locations must be listed under County, Municipal and State Taxes.

By allowing Shopify to automatically calculate sales taxes for all applicable jurisdictions. These can be overridden, but for initial configuration purposes, we will most often allow Shopify to determine sales tax rates.

To set tax rates:

1. Go to Settings > Taxes.
2. Click on the Destination country you wish to edit.
3. Select I want to specify taxes automatically.
4. Add a physical presence Select the State, Province or Region.
5. Enter the ZIP or Postal code of the physical shipping location.
6. Click Add State/Province.

Note: The US State sales tax that is shown in the list of states does not include county and municipal taxes. These will be calculated for each order, however. To view additional local taxes, click on the tax rate range shown under the County, Municipal And Other Taxes column.