Important Update on Duties and Sales Tax Calculation
Shopify has enhanced the Duties and Import Taxes calculator to ensure accurate sales tax calculation for merchants who have registered tax destinations. This update simplifies compliance and helps merchants manage international orders seamlessly.
What’s Changed?
Previously, sales tax would not be calculated for countries where merchants did not configure duty collection, effectively ignoring tax registrations for those countries. Now, sales tax is calculated provided the merchant has a tax registration, even if duties are not collected in that country.
Key Highlights of the Update
- Sales tax calculation is now enabled for countries with registered tax destinations.
- This adjustment ensures merchants remain compliant with international tax regulations.
- Merchants can now manage taxes and duties independently for better flexibility.
If you prefer not to calculate sales tax for international orders where duties are not collected, simply remove your tax registration for the specified country.
Best Practices for Managing Taxes and Duties
- Review your tax registrations for all international destinations.
- Update configurations in the Duties and Import Taxes calculator as needed.
- Stay informed about tax regulations for your target markets.
Learn more about collecting Duties and Import Taxes in our help center.