Tax apps

You can use a third-party tax app to manage the way that you charge tax to your customers instead of using Shopify's tax settings.

Note

Tax apps are created by third-party providers and are not managed by Shopify. If you have questions about a tax app or need support, then contact the app provider.

Before installing a third-party tax app

Learn more about gaining access to Shopify's tax platform and using third-party tax apps.

Before you install a third-party tax app, review the following considerations:

• Third-party apps require an account with the tax service provider before you can activate the app in your Shopify admin. Before you install a tax app, set up an account with the service that provides the app, and have your login credentials ready.
• Tax apps require a complete shipping origin address to calculate taxes. Before you install a tax app, verify that your locations have full and complete addresses.
• If a tax app is temporarily unavailable, then your tax settings in the Shopify admin are used to provide backup tax collection. Before you install a tax app, ensure that your Shopify tax settings are up-to-date.
• If your store uses B2B and has a company with saved tax information, then this information is transmitted to the tax app provider to calculate tax exemptions.
• Tax apps provide sales tax calculations in all countries and regions, replacing most of the settings in your Shopify admin. However, some settings in Shopify remain active when you use a tax app:
  • Tax-inclusive pricing.
  • Tax-inclusive pricing by country.
  • Setting a product as taxable.
  • Setting a customer as not taxable.
  • Collecting international duties and import taxes at checkout. If the collection of duties and import taxes is active, then it's used to collect all cross-border taxes, including domestic import taxes. Duties and import taxes are collected at checkout even if you activate tax collection in a country or region by using a tax app.

Installing and activating third-party tax apps

Until you fully complete these steps and activate a tax app, your existing tax settings in the Shopify admin are used to collect tax.

Install a tax app

1. From your Shopify admin, go to Settings > Taxes and duties.
2. In the Tax apps section, find the tax app that you want to use, and then click Install.
3. Carefully review the information in the About and Before installing sections, and verify that you can complete all the steps.
4. Click Install.
5. Review the app's privacy and permissions details, and then click Install app.

After the app is installed, you're automatically redirected to the tax partner login page. You can then connect the app to your account with the service provider and configure your settings. The third-party service provider that provides the app manages your login credentials and configuration of your tax settings in their system, so contact the app provider for support if you encounter issues.

Activate a tax app

1. In the tax provider's system, configure your tax settings.
2. Return to your Shopify admin. On the banner in the Taxes and duties section, click Activate.
3. Click Activate.

Backup rates for third-party tax apps

If a third-party tax app encounters an issue that results in its tax rates being temporarily unavailable, then the tax charged in your online store is calculated by using your tax settings in the Shopify admin. The tax rates that are used are determined by the settings that calculated your taxes prior to activating a tax app.

• If your US tax rates were calculated by Basic Tax or Shopify Tax, then registration-based taxes are used to calculate taxes when a tax app is unavailable.
• All tax overrides that you set up in Shopify for shipping or products are used.
• If your tax settings in Shopify are based on tax registrations, then backup tax calculation is provided for countries and regions where you have active tax registrations.
• If your tax settings in Shopify are based on locations, then backup tax calculation is provided for countries and regions where you've manually added tax rates.

Caution

If a tax app is temporarily unavailable and you don't have backup rates set up in Shopify, then taxes are not charged on your customers' purchases. If you start collecting tax in a new country or region, ensure that you add up-to-date tax registrations or add the tax rates in the Shopify admin.

Deactivating and uninstalling third-party tax apps

When you deactivate or uninstall an active third-party tax app, your tax calculations immediately revert to being determined by your settings in the Shopify admin. In most cases, your settings revert to the tax service that you used before you activated a tax app, with the following exceptions:

• If your previous US tax service was Basic Tax, then your settings revert to Shopify Tax instead. If you prefer to continue using Basic Tax, then you can change your tax service in the Shopify admin.
• If you add or remove US tax locations while the tax app is active, then your service might change.
  • If you had a US location before you activated a tax app, you removed all US locations while the tax app was active, and then you deactivate the tax app, then your store's tax settings revert to the closest possible tax service for stores without US locations.
  • If you didn't have a US location before you activated a tax app, you added a location while the tax app was active, and then you deactivate the tax app, then your store's tax settings revert to the closest possible tax service for stores with US locations.

Note

If your tax settings revert to Shopify Tax and your store has crossed the billing threshold for sales, then fees on orders where tax is calculated start immediately.

Deactivating a tax app stops the calculation of taxes by using that app, but keeps the app available in your Shopify admin with all your configuration settings retained. Uninstalling a tax app removes it from your Shopify admin. If you uninstall a tax app and then want to use it to calculate your taxes, then you need to install, configure, and activate the tax app again.

Deactivate a third-party tax app

1. From your Shopify admin, go to Settings > Taxes and duties.
2. In the Current tax service section, click Manage.
3. Click Deactivate.
4. Indicate that you understand that deactivating the tax app immediately applies Shopify's tax settings.
5. Click Deactivate.

Uninstall a third-party tax app

1. From your Shopify admin, go to Settings > Taxes and duties.
2. In the Current tax service section, click Manage.
3. Click Uninstall.
4. If the app that you're uninstalling is currently active, then indicate that you understand that deactivating the tax app immediately applies Shopify's tax settings.
5. Click Uninstall.