Location-based tax settings

建立税收是基于税收登记the following regions:

• United States
• Canada
• European Union
• United Kingdom
• Norway
• Switzerland
• Australia
• New Zealand

If you’re not based in one of these regions and you need to charge taxes, then taxes are applied at the country or regional level, depending on your local tax laws.

Set up location-based tax rates

Many countries charge taxes based on an order's destination, which means that you charge sales tax at the rate defined in the region where your product is delivered. If you're not sure about these details, then consult with a tax expert.

Before you set up taxes based on destination, verify whether you are obligated to charge sales taxes to your customers, and whether your product is taxable.

Steps:

1. Confirm that your store address isn't in a region that uses registration-based taxes, and that you have set up a shipping zone for the destination country.

1. In theTax regionssection, click the name of the country.

2. In theBase taxessection, enter the rates that apply in the country and any regions. You can choose whether a tax in a region is usedinstead of a federal tax, is added to a federal tax, or is compounded with a federal tax. If you're not sure which setting to choose, then contact your tax authority or a local tax expert.

3. ClickSave.

Tax number requirements in Canada

If your store is based in Canada, then generally you need to register for a GST/HST account if both of the following are true:

• You sell or lease taxable products or services.
• Your revenue from taxable sales in Canada is more than 30,000 CAD over the past four completed consecutive calendar quarters, or more than 30,000 CAD over the current calendar quarter.

If your store is not based in Canada, then generally you need to register for a GST/HST account if both of the following are true:

• You sell taxable products or services to customers in Canada, and fulfill those orders from a warehouse located in Canada.
• Your revenue from taxable sales in Canada is more than 30,000 CAD over the past twelve months.

If either of the preceding cases apply to you, then you might need to collect taxes on your sales, remit those taxes to the appropriate tax authority, and file regular reports with the tax authority. If your sales are lower than the threshold, then you don't need to register for a GST/HST account, and you don't need to collect or remit taxes.

Steps

1. Register with the Canada Revenue Agency athttps://www.canada.ca/en/services/taxes/gsthst.html.
2. In your Shopify admin, go toSettings>Taxes and duties.
3. In theTax regionssection, clickCanada.
4. ClickAdd GST/HST number.
5. In theGST/HST numberfield, enter your tax number. If you applied for a tax number, but don't have one yet, then leave this field blank. You can update it when you receive your number.
6. ClickSave.

Include taxes in product prices

In some countries, such as the United Kingdom, you need to include sales tax in the displayed prices for most types of merchandise.

If you enable this feature, then the tax is calculated by using the formulaTax = (Tax Rate X Price) / (1 + Tax Rate). You and your customers will still see the tax as a line item, even though no taxes appear to be added. The subtotal and total will be the same, but the amount of tax you need to remit for an order will also be indicated.

Steps:

1. From your Shopify admin, go toSettings>Taxes and duties.
2. CheckAll prices include tax.
3. ClickSave.
4. Optional: Touse your customer's local tax rate, do the following:
   1. From your Shopify admin, go toSettings>Markets.
   2. In theOther marketssection, clickPreferences.
   3. SelectInclude or exclude tax based on your customer's country. Including or excluding tax based on your customer's country is currently in beta, and might not be available for all stores.
5. ClickSave.

After you have set up your prices to include taxes, leaveCharge tax on this productchecked on your product pages so that the taxes are included in the displayed price. Customers will see the included amount of tax beside the total at the checkout.

设置your prices to include taxes does not affect your tax reporting.

For example, Maya and Gabriel both live in the same region and both have online stores. The region has a 10% tax rate and allows business owners to choose whether to include taxes in their prices.

• Maya doesn’t include taxes in her prices. If she lists a product for $100, then the tax is calculated to be $10, for a total sale price of $110. The formula for this isTotal = List Price X (1 + Tax Rate):

  $100 X (1 + 0.1) = $100 X 1.1 = $110

• Gabriel decides to include all taxes in his listed prices. To arrive at a $100 total listed price that includes tax, the tax-included formula is used to calculate the tax portion. The formula for this isTax = (Tax Rate X Price) / (1 + Tax Rate):

  Tax portion of price = (0.1 X $100) / (1 + 0.1) = $10 / 1.1 = $9.09

  Product portion of price = $100 - $9.09 = $90.91

  These calculations are performed automatically. The tax amount is shown in the details of all orders so that both Gabriel and his customers see the actual tax amount charged.

Include or exclude tax based on your customer's country

If you sell internationally, then you can include or exclude taxes in your product prices based on your customer's location. If you enable this setting, then customers in countries or regions such as the United Kingdom see prices inclusive of their local value added tax (VAT), or exclusive of taxes in countries or regions such as the United States, where buyers expect to see taxes added at checkout.

If you use tax overrides for certain products or collections of products, your margins might be affected.Learn more about considerations for including or excluding tax based on your customer's country.

For example, Gabriel lives in a region with 10% tax, has his prices set to include tax, and sells to several regions outside his own. He activates theInclude or exclude tax based on your customer's countrysetting. He sells a product for $100.

• In his own region, the product costs $100. Using the formulaTax = (Tax Rate X Price) / (1 + Tax Rate), the product portion of the price is $90.91, and the tax portion of the price is $9.09.
• In regions where Gabriel isnotrequired to charge tax, the price of the product at checkout is $90.91, the product portion of the price.
• In a region where Gabrielisrequired to charge tax at a 20% tax rate, the price of the product at checkout is $109.09. This price is calculated by applying the region's 20% tax rate to the product portion of the price.

你的商店地址在Shopify管理使用determine your home tax rate, which is deducted from your tax-inclusive prices when you sell to another tax-inclusive country or region. Changing your store's address in the admin to another country or region will change the home tax rate.

Considerations for including or excluding tax based on your customer's country

Before you enableInclude or exclude tax based on your customer's country, review the following considerations.

• Including or excluding tax based on your customer's country or region isn't supported in the following cases:
  • Stores on the Shopify Plus plan that use Avalara AvaTax.
  • Stores that use third-party apps that offer post-purchase upselling.
  • Accelerated payment methods, such as Google Pay or Apple Pay, are supported for merchants using Shopify Payments only. Accelerated payment methods aren't supported for merchants using other payment gateways.
  • Dynamic checkout buttonsaren't supported for use with including or excluding tax based on your customer's country. If you want to include or exclude tax in your prices based on your customer's location, then disable your dynamic checkout buttons.
• Your home tax rate is determined by your store's address. This might affect your tax overrides. For example, if you have an override for a product that has a 10% tax rate, but your store's home tax rate is higher, then the higher home tax rate will be deducted from these products when shipping internationally. This might affect your margins. If you want to prevent such items from shipping internationally, useshipping profiles.
• Your home tax rate is used to calculate the price at checkout. This might cause inaccuracies if you have fulfillment locations in regions with different tax rates.
• After you activate theInclude or exclude tax based on your customer's country在checkou正确设置,显示价格t. However, the product pages or the cart don't display the prices correctly unless either of the following is true:
  • You sell inmultiple currenciesand use Shopify payments. In this case, prices are displayed correctly at checkout, on the product pages, and in the cart.
  • Customers make their purchases using an address that is located in a region that is eligible for price adjustment, have cookies enabled, haven't cleared their browser cache, and aren't visiting the store using incognito mode. In this case, prices are displayed correctly at checkout, on the product pages, and in the cart in subsequent visits to the store.

Enable including or excluding tax based on your customer's country

1. In your Shopify admin, go toSettings>Taxes and duties.
2. CheckInclude or exclude tax based on your customer's country.

Charge taxes on shipping rates

In some regions, you need to charge taxes on shipping. If your store is outside Canada, the United States, the European Union, the United Kingdom, Norway, Switzerland, Australia, or New Zealand, then follow the steps below to charge taxes on your shipping rates.

Steps:

1. CheckCharge tax on shipping rates.

2. ClickSave.

Make sure that taxes aren't duplicated

If you set up taxes for a country and its sub-regions, then you need to make sure that you specify whether a regional tax is added or compounded to any federal tax, or is to be used instead of the federal tax. If your customers in a country are getting charged taxes twice, then you might have the sub-region taxes configured to be added to the total tax for that country.

For example, you have an item that costs $100.00. A customer buys that item in an area where there are country and regional tax rates, both at 10%.

• If you selectadded to, then the country and region are both charged and added together. In this case, the country tax amount is $10.00, and the regional tax is $10.00. These are added together for a total price of $120.00.

• If you selectinstead of, then the regional amount is charged and the country amount isn't. In this case, there is no country tax, and a regional tax of $10.00. The total price of the item is $110.

• If you selectcompounded on top of, then the tax amount for the country is determined and then the regional amount is charged on that subtotal. In this case, the country tax amount is $10.00. Regional tax is then applied to the subtotal of $110.00, producing a regional tax amount of $11.00. When totaled, this results in a total price of $121.00.

You can verify or change your tax settings for a region.

Steps:

1. In theTax regionssection, clickEditbeside the country's name. The taxes are shown for the country and for the sub-regions by state or province.

2. Choose an option from the drop-down menu under the sub-region tax rate to specify how you want to charge taxes.

3. ClickSave.

Change the default name of the VAT

For countries that have a value added tax, the default name that is given to the tax isVAT. The short formVATappears on your checkout page, customer receipts, and in the订单细节section of orders.

If you're in a country that uses a different short form for the tax, then you can change the name on theTaxespage. For example, several countries useIVAinstead ofVAT. You can change the name only if subregions are included for the country in the Shopify admin, such as for Italy and Spain. You can't change the name if subregions aren't included, such as for Austria and Norway.

Steps:

1. In theTax regionssection, click the country.

2. For each region, changeVATto the short form that you want to use.

   

   The name is specific for each region, so you need to change it for each one.

3. ClickSave.

UK taxes and Brexit

• If the sale of goods is equal to or less than 135 GBP, then you must register for VAT in the UK. In this case, VAT is collected at the point of sale and remitted by the merchant.
• If the sale of goods is over 135 GBP, then you might not be required to collect VAT at the point of sale. In this case, VAT and duties are remitted by the importer. If you choose to, you can charge your customer for VAT and duties at the time of sale, and then provide these funds to the shipper or importer using a shipping label. Alternatively, you can send the orders without charging VAT and duties, and your customer will pay extra funds at the time of delivery.Learn more about handling VAT and duties.

Learn more about the implications of Brexit for your business.

Considerations for tax exemptions with tax-included prices

If you include taxes in your product prices, then you can't display a tax-exempted price for certain customers, such as GST exemptions for customers outside Australia and New Zealand.

If you need to provide an exemption to specific customers, then consider the following options:

• Don't include taxes in your prices.
• Modify your themeto show tax exempt prices in your store, and useShopify Scriptsto apply the 20% VAT exemption during checkout.
• Use anexpansion storeto allow international buyers to pay the non-tax price.