Troubleshooting | Incorrect or Missing Tax

Symptoms

  • Customer was charged the incorrect tax
  • Customer was not charged tax

Incorrect Tax Charged

If tax was incorrectly charged, follow these steps to determine why.

  1. View the order in the control panel.
  2. Look at the order total, then the tax. What percentage should have been charged?
  3. Multiply the order total both with shipping and without shipping by that percentage.
    • $100 w/o shipping * 8% = $8
    • $110 w/ shipping * 8% = $8.80
  4. If the tax is incorrect, go to Store SetupTax
    In some versions of the control panel, this is under Setup & ToolsSet up your storeTax.
  5. Check the Calculate Tax Based on.
    • If Billing: Find what country, state, and ZIP are shown under the billing address on the order
    • If Shipping: Find what country, state, and ZIP are shown under the shipping address on the order
    • If Store Address: If you wish for customers to be charged tax based on their location, you should change this setting to shipping.
  6. Now that you've figured out what address the system is basing the tax on, open up Tax Rates & Zones.
  7. Have tax zones been created?
    • If yes, find the zone which the customer is inside of & select Edit Rates
    • If not, continue below
  8. Now that you are editing the rates for the zone which the customer is inside of, are there one or more rates inside?
  9. Compare the rates shown with what you determined should be charged earlier
    • If the rates are different, adjusting them
    • If the rates are the same, continue below
  10. Most commonly, products are set to use the Default Tax Class. If you've adjusted this, go through each item in the order to ensure that Default Tax Class is selected for that product. Tax Class settings can be found by clicking more pricing when editing a product.
    • If the products are set to the wrong tax class and the rate for that class is incorrect, adjust either the tax class or the tax rate
    • If the products are set to the correct tax class, continue below
  11. Perform a test checkout on the store adding the exact same products the customer used and checkout with the same address.
    • If the checkout shows the incorrect amount, continue below
    • If the checkout shows the correct amount, continue below
  12. Open Customers › Customer Groups. Do groups exist?
    • If no, settings have very likely changed in the store since the customer placed the order. Unless you're able to successfully reproduce the error, this issue should not happen again.
    • If yes, continue below
  13. Go to SettingsStore SetupTax.
    In some versions of the control panel, this is under Setup & ToolsSet up your storeTax.
  14. Open Tax Rates & Zones, select edit zone for the zone the customer is located in.
  15. Does the tax zone apply to all customers in the store?
  16. Check which group the customer is in, compare with the different tax zones.
    • If the customer is in the correct group but should have been taxed, adjust the zone to apply to customers in that group.
    • If the customer is not in the correct group, move the customer to a different group.
  17. If there is no other resolution, create a case for further investigation.

No Tax Charged

If no tax was charged on an order, follow these steps to determine why.

  1. View the order in the control panel.
  2. Verify what percentage the customer should have been charged.
  3. Take note of the location of the billing and shipping address.
  4. Open Store SetupTax
    In some versions of the control panel, this is under Setup & ToolsSet up your storeTax.
  5. Check the Calculate Tax Based on.
    • If Billing: Find what country, state, and ZIP are shown under the billing address on the order
    • If Shipping: Find what country, state, and ZIP are shown under the shipping address on the order
    • If Store Address: If you wish for customers to be charged tax based on their location, you should change this setting to shipping.
  6. Now that you've figured out what address the system is basing the tax on, open up Tax Rates & Zones.
  7. Have tax zones been created?
    • If yes, find the zone which the customer is inside of & select Edit Rates
    • If not, continue below​
  8. Now that you are editing the rates for the zone which the customer is inside of, are there one or more rates inside?
  9. Most commonly, products are set to use the Default Tax Class. If you've adjusted this, go through each item in the order to ensure that Default Tax Class is selected for that product. Tax Class settings can be found by clicking more pricing when editing a product.
    • If the products are set to the wrong tax class and the rate for that class is incorrect, adjust either the tax class or the tax rate.
    • If the products are set to the correct tax class, continue below.
  10. Perform a test checkout on the store adding the exact same products the customer used and checkout with the same address.
    • If the checkout shows the incorrect amount, continue below.
    • If the checkout shows the correct amount, settings have very likely changed in the store since the customer placed the order. If you're unable to reproduce the error, the issue should not happen again, but our support team will be happy to investigate further if it does.
  11. Open Customers › Customer Groups. Do groups exist?
    • If no, create an escalated ticket for further investigation.
    • If yes, continue below
  12. Open SettingsStore SetupTax
    In some versions of the control panel, this is under Setup & ToolsSet up your storeTax.
  13. Open Tax Rates & Zones, select edit zone for the zone the customer is located in
  14. Does the tax zone apply to all customers in the store?
    • If yes, create create a case for more investigation.
    • If no, continue below
  15. Check which group the customer is in, compare with the different tax zones.
    • If the customer is in the correct group but should have been taxed, adjust the zone to apply to customers in that group.
    • If the customer is not in the correct group, move the customer to a different group.
  16. If there is no other resolution, create a case for further investigation.

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