Managing Taxes

In Shopify, a merchant can charge tax on both products as well as shipping. For details on how to setup taxation on Shopify refer to Shopify Tax Help.

ShipTurtle also has its own tax utility which can handle cases more easily than Shopify for cases where taxes are determined purely by a product’s Tax code and the Shipper Origin and Ship To Destination pin codes. This is especially useful for businesses out of India or any other country with a GST tax regime.    Regardless of whether you use the default tax rates calculated by Shopify or ShipTurtle, the invoice generation can be handled by ShipTurtle’s native features.

Edit Shop -> Different Tax Settings in ShipTurtle

1. Set Tax rules on ShipTurtle – Enabling this will let you override the tax information received from the shop and use ShipTurtle’s tax calculation utility (details below). Once this is done you can access the below settings to setup tax rules on ShipTurtle –
   • Prices have tax included – Enabling this will tell ShipTurtle to calculate tax as part of the product price/shipping price. If disabled, tax will be levied over and above as applicable. For eg: Product price is $100 with a tax of 10%.
     • If enabled, the invoice will reflect $90.9 as product price + $9.1 tax for a total of $100.
     • If disabled, the invoice will reflect $100 product price + $10 as tax for a total of $110.
   • Charge tax on Shipping rates – Enabling this will tell ShipTurtle to calculate tax on shipping rate. The tax rate used for it will be an input from the merchant.
   • Maintain HS (Harmonized System) information in ShipTurtle – Enabling this will let you maintain HS codes on ShipTurtle and let you use HS-Tax masters utility.

If “Set Tax rules on Shipturtle” is disabled (default setting), ShipTurtle will retrieve tax information from your shop directly.

Using ShipTurtle’s Tax Calculation utility

ShipTurtle has several features to make your tax calculation and invoicing as simple as possible

1. Maintain tax rates and HS codes against products – Most countries have a very simple tax structure where tax is simply charged basis product sold. Tax rates and HS codes for all products can be easily maintained on ShipTurtle’s Product page.
2. HS – Tax% masters – When you have multiple product categories and many vendors (typically in a dropshipping or marketplace business), it can often be difficult to maintain the correct tax rate against HS Codes. In ShipTurtle this can be done easily using a simple HS – Tax% mapping.
3. Easy addition of tax information on order page – Managing masters is tough, especially in a growing business with new vendors and products getting added quickly. Which is why we have intuitive UI features on the main order page to quickly add / edit tax information for any order on the fly.