How To Set Up Taxes On Shopify 2024 (Step by Step)

Let's see how we can set up taxes inside of Shopify for beginners

Alright everybody, welcome to Xpress. Let's see how to set up taxes into Shopify

First of all, let's understand the tax requirements. Before we dive into the setup, it is important to understand your local tax requirements

Tax rates can vary based on your location and the type of products you sell

It's advisable to consult with a tax professional to understand your specific obligations

So, let's head over to your Shopify administrator and start setting up your taxes

First of all, let's access the tax settings into your Shopify. Let's go into login to your Shopify administrator, navigate to settings

and then later on what you're going to do is to select taxes and duties

You'll find all the options to configure your tax settings. Display here provides a comprehensive set of tools to help you manage your tax rate

For example, here you have the managed tax collection of Australia, Canada, the European Union

and there's a lot of elements already been added here. Now, the setting up your tax region

In the tax regions, you'll see a list of countries and regions, start by setting up tax rates of the regions where you are registered to collect taxes

For each region, you can set standard rates, reduce rates, or even exempt certain products from taxes

Now, here we have the configuring the tax rates. Click on a region to edit a taxes here

You can enter the tax percentage that applies and decide if it should be included in your product price

or to add it into the actual checkout. So let's say for example, collect here, and it's going to be asking you for a VN number

After that, it's going to be added here. But in our case, let's say for example, that since our country, we are actually from Mexico

we're going to be enabled taxes in here, and we're going to be receiving the 16

since this actually is the tax obligation into Mexico. And down here, I have all the rates of the country taxes

So after that, add a tax over rate, you hit it to save, and then you can always go back

Now, remember to activate here, tax rates are crucial for correcting billing and compliances

I wanted to make sure that here, and to decide how taxes is charged

you wanted to include tax in the prices, you wanted to charge tax on the shipping rates

and lastly to charge VAT on digital goods. This will create an actual collection that can add digital products

we apply to products in the collection at checkout, and all of that

In my case, since we are not selling digital products, I want to choose to disable this

and hit now to save. I maintain this into disabled, and I hit save

Now, setting up tax in ShiFi is straightforward, but it requires attention to details

to ensure accuracy, regularly review and update tax settings to align any changes in the tax law

What I love to do is to go to open a new tab, and look out for the tax laws for

let's say for example, Canada. And it's going to be showing you the tax policy of Canada

and what are the actual policies and legislation of that in order to continue

you wanted to get started by collecting some taxes into this specific country

So if you find this video helpful, please give us a thumbs up, subscribe to express for more ShiFi tutorials

If you have any questions or additional tips on setting up your taxes, you can share them into the comments below

Thank you once again for watching the video, don't forget to like and subscribe guys. Hopefully we can all see you into some ShiFi success managing stores

Thank you guys, and see you next time