Product categories or tax overrides can be used to apply the correct rate.
NOIR & BLANCO COMMUNITY
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
If a product has a reduced tax rate, Shopify applies that lower rate instead of the standard tax rate when calculating taxes for eligible orders in the relevant jurisdiction.
For example, if the standard VAT rate is 20% but a product qualifies for a 5% reduced rate, Shopify calculates tax using 5% for that product (assuming the product is assigned the correct tax category and the jurisdiction supports that reduced rate).
This helps ensure that customers are charged the correct amount of tax and that the merchant’s tax reports and filings reflect the proper tax treatment for products that qualify for reduced rates.