Hi All
We are trying to better understand the tax calculation conducted by shopify, when using Markets and local currencies. We are working within bookkeeping automation so it is crucial to us that we are able to reproduce the tax calculation in the bookkeeping system.
- Is there any way that we can calculate the tax amount given in the order payload? E.g. the tax amount on the shipping is almost 1.2 GBP off compared to the calculated value. How can this be related only to round offs?
- Can anyone explain in more details how these numbers are calculated, so we can explain our customers the difference? And how the Market settings, round off, dynamic exchange rate and price adjustments affects the tax calculations?
- A info box “Product pricing includes a 2 % conversion rate fee paid by customers.” is found in the UI. It sounds like a hidden fee is added to the products and the buyer of this product is paying this fee, is this correct understood? This fee is not stated as a line at checkout, neither in the order api payload!
Prerequisite for the order:
- Exchange rates (DKK to GBP) is Dynamic, set under Markets in the admin (Note: Product pricing includes a 2 % conversion rate fee paid by customers.)
- Prices are rounded
- Prices are adjusted with an increase of 10%
Tax rate = 0.2
Calculation: (total_incl_tax) * (1- (1/(1+tax_rate)))
| Total incl. tax | Calculated tax | Shopify API data tax | |
|---|---|---|---|
| line item 1 (GBP) | 88 | 14.67 | 14.08 |
| line item 2 (GBP) | 456 | 76.00 | 72.96 |
| shipping (GBP) | 35 | 5.83 | 7 |
| 579 | 96.50 | 94.04 | |
| duties | 28.38 | 4.73 | 4.73 |
Part of the order:
"line_items": [
{
"id": 16421671993674,
"admin_graphql_api_id": "gid://shopify/LineItem/16421671993674",
"attributed_staffs": [],
"current_quantity": 1,
"fulfillable_quantity": 1,
"fulfillment_service": "manual",
"fulfillment_status": null,
"gift_card": false,
"grams": 4536,
"name": "The Complete Snowboard - Ice",
"price": "792.02",
"price_set": {
"shop_money": {
"amount": "792.02",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "88.00",
"currency_code": "GBP"
}
},
"product_exists": true,
"product_id": 9569741766986,
"properties": [],
"quantity": 1,
"requires_shipping": true,
"sku": null,
"taxable": true,
"title": "The Complete Snowboard",
"total_discount": "0.00",
"total_discount_set": {
"shop_money": {
"amount": "0.00",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "0.00",
"currency_code": "GBP"
}
},
"variant_id": 49534218961226,
"variant_inventory_management": "shopify",
"variant_title": "Ice",
"vendor": "Snowboard Vendor",
"tax_lines": [
{
"channel_liable": false,
"price": "126.72",
"price_set": {
"shop_money": {
"amount": "126.72",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "14.08",
"currency_code": "GBP"
}
},
"rate": 0.2,
"title": "TAX"
}
],
"duties": [
{
"id": 97159479626,
"admin_graphql_api_id": "gid://shopify/Duty/97159479626",
"country_code_of_origin": null,
"harmonized_system_code": "8523499000",
"price_set": {
"shop_money": {
"amount": "0.00",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "0.00",
"currency_code": "GBP"
}
},
"tax_lines": [
{
"channel_liable": false,
"price": "0.00",
"price_set": {
"shop_money": {
"amount": "0.00",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "0.00",
"currency_code": "GBP"
}
},
"rate": 0.2,
"title": "TAX"
}
]
}
],
"discount_allocations": []
},
{
"id": 16421672026442,
"admin_graphql_api_id": "gid://shopify/LineItem/16421672026442",
"attributed_staffs": [],
"current_quantity": 6,
"fulfillable_quantity": 6,
"fulfillment_service": "manual",
"fulfillment_status": null,
"gift_card": false,
"grams": 0,
"name": "The Collection Snowboard: Hydrogen",
"price": "684.01",
"price_set": {
"shop_money": {
"amount": "684.01",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "76.00",
"currency_code": "GBP"
}
},
"product_exists": true,
"product_id": 9569741865290,
"properties": [],
"quantity": 6,
"requires_shipping": true,
"sku": null,
"taxable": true,
"title": "The Collection Snowboard: Hydrogen",
"total_discount": "0.00",
"total_discount_set": {
"shop_money": {
"amount": "0.00",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "0.00",
"currency_code": "GBP"
}
},
"variant_id": 49534219092298,
"variant_inventory_management": "shopify",
"variant_title": null,
"vendor": "Hydrogen Vendor",
"tax_lines": [
{
"channel_liable": false,
"price": "656.65",
"price_set": {
"shop_money": {
"amount": "656.65",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "72.96",
"currency_code": "GBP"
}
},
"rate": 0.2,
"title": "TAX"
}
],
"duties": [
{
"id": 97159512394,
"admin_graphql_api_id": "gid://shopify/Duty/97159512394",
"country_code_of_origin": null,
"harmonized_system_code": "3919908035",
"price_set": {
"shop_money": {
"amount": "255.43",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "28.38",
"currency_code": "GBP"
}
},
"tax_lines": [
{
"channel_liable": false,
"price": "42.57",
"price_set": {
"shop_money": {
"amount": "42.57",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "4.73",
"currency_code": "GBP"
}
},
"rate": 0.2,
"title": "TAX"
}
]
}
],
"discount_allocations": []
}
]
"shipping_lines": [
{
"id": 5486604353866,
"carrier_identifier": null,
"code": "Standard",
"discounted_price": "315.01",
"discounted_price_set": {
"shop_money": {
"amount": "315.01",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "35.00",
"currency_code": "GBP"
}
},
"is_removed": false,
"phone": null,
"price": "315.01",
"price_set": {
"shop_money": {
"amount": "315.01",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "35.00",
"currency_code": "GBP"
}
},
"requested_fulfillment_service_id": null,
"source": "shopify",
"title": "Standard",
"tax_lines": [
{
"channel_liable": false,
"price": "63.00",
"price_set": {
"shop_money": {
"amount": "63.00",
"currency_code": "DKK"
},
"presentment_money": {
"amount": "7.00",
"currency_code": "GBP"
}
},
"rate": 0.2,
"title": "TAX"
}
],
"discount_allocations": []
}
]