Manage your taxes

After you update your store to use registration-based tax features, you can manage your tax settings, including your registrations, overrides, and customer exemptions.

管理再保险gions in which you're registered

You can add, delete, or change your registrations or account numbers at any time.

Steps:

1. From your Shopify admin, go toSettings>Taxes and duties.
2. In theCountries/regionssection, click your region.
3. In theSales taxsection, do either of the following:
   • To set up a new tax registration, clickCollect sales tax.
   • To edit an existing tax registration, click the...button next to the region you want to edit.
4. Update your regions and account numbers.
5. ClickCollect sales tax.

Override taxes

Sometimes the default tax rates don't apply to certain products. For example, certain types of children's clothing might be exempt from tax or have a lower tax rate. If the default rates don't apply, then you need to create an override.

Create a product tax override

Creating an override for products is a two-step process. First, youcreate a collectionthat includes the products that have a different tax rate. Then you specify to which region the override applies, and the tax rate to use.

Steps:

1. Create a collection by doing the following:
   1. From your Shopify admin, go toProducts>Collections.
   2. ClickCreate collection, and then enter a name for it.
   3. UnderCollection type, selectManual.
   4. ClickSave collection.
2. Create the override by doing the following:
   1. From your Shopify admin, go toSettings>Taxes and duties.
   2. In theCountries/regionssection, click the country or region to create an override for.
   3. In theTax overridessection, clickAdd a tax override.
   4. SelectProducts.
   5. Select the collection.
   6. Select the region where the override applies.
   7. Enter the tax rate for the collection in that region.
   8. ClickAdd override.

Manage your tax calculations

You can manage various settings that determine how tax is calculated on your products. For example, you can set whether taxes are included in your prices, whether to charge VAT on digital goods, and whether to apply tax to shipping costs. You manage these settings on theTaxes and dutiessettings page. Refer toTax overrides and exemptionsto learn more.

Steps:

1. From your Shopify admin, go toSettings>Taxes and duties.
2. In theDecide how tax is chargedsection, select the options that apply.
3. ClickSave.

Tax rounding

Previously, taxes were rounded at the invoice level by calculating the taxes on the order's subtotal, and then rounding the results. After you update your settings to use the EU tax features, tax amounts are rounded at the line-item level. In this case, the total tax value is calculated by applying the tax rate to each line in the order, rounding the result, and then adding these subtotals together to arrive at the total value of the order.

Rounding taxes at the line level improves the calculation of different tax rates and makes it easier to calculate taxes for orders that include taxable and non-taxable products.

Example of tax rounding at the invoice level and at the line-item level

A customer places an order for 42 different items, each with a price of $14.99 and subject to 18% tax. The line item tax for each product is determined by multiplying the price ($14.99) by the tax rate (0.18), for a result of $2.6982.

Previously, the tax of each line item was added together, and the total was rounded. In this case, the added total was $113.3244, which was rounded to $113.32.

Tax is now rounded at the line-item level, which means the tax amount is rounded for every product individually. The line-item tax amount of $2.6982 is rounded to $2.70, which is then added together to get the total. In this case, the tax total is $113.40.