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Does Shopify Include Tax?

Last updated on October 2, 2022 @ 3:25 am

Shopify is a platform for businesses of all sizes to create an online store. It offers users a customizable platform, an easy-to-use checkout process, and a wide range of features. One question that many Shopify users have is: does Shopify include tax?

The answer to this question depends on the country in which you are doing business. In the United States, for example, Shopify does not automatically calculate and add sales tax to your orders.

This is because each state has different sales tax rates, and it is the responsibility of the business to determine and collect the correct amount of tax. There are a few ways to do this, including using a third-party tax calculator or adding a sales tax line to your orders manually.

PRO TIP: If you are selling products through your Shopify store, it is important to be aware of the tax implications. Depending on your location, you may be required to collect and remit taxes on your sales. Failure to do so can result in penalties and interest.

In other countries, such as Canada, Shopify does include tax in the price of your products. This is because the Canadian government requires all businesses to charge and collect GST (Goods and Services Tax) on all sales. Shopify will automatically calculate and add GST to your orders based on the address of your customer.

So, does Shopify include tax? It depends on which country you are doing business in.

In the United States, Shopify does not automatically calculate and add sales tax to your orders. In Canada, however, Shopify does include GST in the price of your products.

Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.