Shopify allows you to collect the estimated taxes and duties through them. This is not preferred when using Swap Global
Disabling Shopify Tax Collection
To prevent double-charging customers, Shopify tax collection should be disabled for all countries Swap Global handles.
Tax Settings can be found in Settings --> Taxes and Duties.
On this page, ensure that tax collection is disabled for all countries where Swap Global is handling shipping. If tax collection is disabled, a dash (—) will be displayed in the “Collecting” column.
Allowing Tax Collection for Specific Countries
If you are using Shopify tax collection for specific countries (e.g., domestic), your settings should be updated to ensure that tax is not double-charged for international customers.
In the Shopify Admin Settings —> Taxes and Duties:
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If you are based in a country that incorporates taxes (such as VAT) into the product price (i.e. UK), then the first box, “Include sales tax in product price”, should be checked. Otherwise, these customers will see an additional tax charge at checkout.
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If you check the first box, you should also check the second box, “Include or exclude tax based on your customer’s country.” This will remove the “tax” component of the product price when a customer from another country purchases.
This should cause Shopify to only collect tax in countries where the merchant has enabled Shopify tax collection and allow this system to work seamlessly with Swap Global.
Confirming Correct Prices
You can confirm that the correct prices are being displayed for a specific country by navigating to that country’s market settings.
Navigate to Settings --> Markets and then click on a country’s market.
Click on Products and Pricing, then View Price under any product.
Click on the dropdown for any of the product variants to view a full breakdown of how this variant’s price is calculated for the given market.
⚠️ Confirm that the line 20% tax (United Kingdom) removed is displayed. This means that the price-inclusive UK VAT is removed before the price is calculated for other countries.
In the example above, a 32% price adjustment is applied by Swap (a combination of VAT-inclusive and pricing coefficient). UK taxes are removed from the price, the price is converted from GBP to EUR, and then Shopify adds its conversion fee.