Tax calculation in Shopify and Cleverific
Updated 2 weeks ago
When opening your order in Cleverific without having made any changes, you may see an outstanding amount or refund due for a few cents. This is usually due to the taxes being rounded.
Tax calculation in Shopify
Historically, tax amounts were rounded at the order level. This means that the total tax value was calculated by adding the prices of every item in an order, applying the tax rate to the order's subtotal, and rounding the result.
In April 2020, Shopify introduced new sales tax features for US and Canadian tax jurisdictions. Using these new features, the total tax value is calculated by applying the tax rate to each line in the order, rounding the result, and then adding these subtotals together to arrive at the total value of the order.
Tax rounding in Cleverific
The change in calculation and rounding methodologies can result in small variances in your total tax amounts in Cleverific. This can result in the following problems:
Without having made any changes, Cleverific shows a balance due of only a few cents.
Without having made any changes, Cleverific shows a refund due of only a few cents.
Note: If you see this problem happening in Cleverific, please contact us at [email protected] with your order number. We will upgrade your store to match Shopify's tax calculator.
Enabling your store with Shopify's tax calculator means that the tax line editing feature will no longer be available in Advanced Mode. You won’t be able to manually adjust taxes or have them recalculate when changing unit prices, due to Shopify’s limitations.