Improve Tax Calculations with Updated Shopify Duties Settings

Executive summary:

• Taxes now calculated for configured countries with tax registrations.
• Previously, tax was ignored if duties weren't collected.
• Affects international order management and tax compliance.

What changed

Shopify Plus merchants using the Duties and Import Taxes calculator will now have taxes calculated in countries where they've configured not to collect duties but have a tax registration.

Why it matters

This change is crucial for merchants engaging in international sales. It ensures accurate tax calculations, aiding compliance and avoiding taxation errors that could hinder business operations.

Role-specific impact

• Marketers: Enables precise pricing strategies reflecting actual costs.
• Developers: Reduced need for complex tax calculation workaround implementations.
• Store admins: Streamlines setup and ensures tax compliance.

Use-case example

Real-world scenario & metric

A merchant operating in the EU with multiple country-specific tax registrations can now have accurate sales tax calculations without collecting duties. This adjustment streamlines their invoicing process, with a projected 15% decrease in tax-related errors.

Implementation checklist

1. Review your international sale countries and their duty configurations.
2. Ensure all relevant tax registrations are updated in Shopify settings.
3. If opting out of tax calculation, remove the respective tax registrations.

FAQ

Q: What if I still want to exclude sales tax?
A: Remove the tax registration for the specific country in Shopify settings.

Q: How does this change affect my existing setup?
A: It aligns tax calculations with your current tax registration configurations, ensuring accuracy.

Resources

Consult Shopify's documentation for comprehensive information.

Need guidance? Talk to Makro.