Shopify's tax calculation

Historically, tax amounts were rounded at the invoice 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 Canada tax jurisdictions. Using these new features the total tax value is now 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.

The change in calculation and rounding methodologies can result in small variances in your total tax amounts in Cleverific Order Editor. This can result in the following problems:

  1. Without having made any changes, Order Editor is showing that there is a balance due of only a few cents.
  2. Without having made any changes, Order Editor is showing that there is a refund due of only a few cents.

If you are seeing this problem, then Shopify may have upgraded you to the new sales tax features already.

Please contact our support so that we may upgrade your store to Order Editor's latest tax calculator that matches Shopify's new feature.