Sales tax settings in Shopify
As part of your website development, you have likely already set your tax preferences for web sales. Tax collection and remittance is an unavoidable part of running a business. Some retailers prefer to add any relevant sales tax at checkout, while others do not (in some countries it is also required that sales tax be included in the display price, for example). When listing on marketplaces, display prices are considered tax-inclusive. For this reason, in some cases it is important to check your tax settings before listing your products to ensure you are sending accurate pricing and not duplicating tax remittance.
Most retailers (particularly in the US) have their tax preferences set to NOT display prices inclusive of tax, rather add tax at checkout. In this case, it is important to have your website tax settings configured correctly to ensure Codisto is sending the correct pricing. Retailers should always enter product pricing the same way that you'd like to display pricing on site. Tax settings should then be configured accordingly.
*Note* Tax settings are applied storewide meaning you must enter prices inclusive or exclusive of sales tax for your entire catalog.
Shopify makes it easy to check whether you are including tax in your product prices or adding at checkout. If you are not including tax in your product prices then Codisto will recognise this and add the required sales tax when sending your data to the marketplace.
How to check tax settings in Shopify
- From your Shopify admin, go to Tax settings > Taxes.
- Check preference for prices with tax included.
- Click Save
Alternatively, if you need to have your website sales tax setting not to include tax in product prices, be aware that your products will be listed + sales tax on your sales channels.
For US sellers, Codisto also enables you input tax codes within our software to notify the marketplace of any tax collection requirements.
For more information on setting up and managing your tax requirements in Shopify.