We have pretty recently on-boarded a client. They have Shopify Plus and they have a situation regarding taxes that we need to help them with if we can. They are located within the United States.
They have a fairly unique taxation situation that hopefully we are looking to get help with. Within their product portfolio, they offer several different categories of products. One category of products is subject to a separate tax of 59.27% in their state. This 59.27% tax only needs to be calculated on the COST of producing the products within this category, not how much the product is being sold for. This means that no matter how much the product is being sold for, there still this extra tax that needs to be added to the cost of the products. At the same time, sales tax needs to be added to the retail price of the product, but both taxes need to be independently calculated from each other and cannot compound on one another. This 59.27% tax only needs to be calculated within their state.
Here is an example - one product costs $3 at retail price to the consumer on the online store. The cost to produce this product is 76 cents, so the 59.27% tax will cost 45 cents and needs to be charged at the time of purchase. There is still sales tax of approximately 7% on the $3 as well. Essentially, its 3.00*0.07 + 0.45 . Additionally, if the price if the product is discounted to another amount such as $2, there is still a $0.45 tax on it regardless, so now it would be 3.00*0.07 + 0.45. The governing body would like for this separate tax to be displayed as its own line item on invoices when the client is checking out. There would be approximately 40 products with about 210 variants that would would all require a different $ value that would need to be assigned to each product.
Here's what we think the deliverable would entail:
An admin page where the admin can set a special tax rate for each state. To start, it should only show California and a button to Add State
An admin page where the admin can select a product, then add a value for "Production Cost"
During checkout, if the customer has an account that is marked as "tax exempt", we do nothing and they can checkout normally
If the customer does not have an account or has an account that is not marked as "tax exempt" AND they have a Shipping Address in California (or any other state that has been set up with a tax rate), we calculate (state tax rate X production cost) and we add this amount to the total cost. The amount should appear on its own line above the total cost and be named "Sin Tax"
The Sin Tax line must appear during checkout and also on invoices
An admin page where the admin can run a report to show the total amount of tax collected for a particular time period (year to date, by month, total all time, date range), by State and for All States
Here's a simplified explanation of the calculation portion.
We need to multiply two numbers together and then save the result in a product meta field
We'd have one database table called "States" that would contain STATE_NAME and RATE (so, for example "California" and "3")
Then, we'd have another table called "Products" that would contain PRODUCT and COST (for example "Shoes" and "2")
Now, we multiply those two numbers and store the result in a product metafield (so, in this example, we'd end up with "Shoes" and "6")
Now what we need to do is add the $6 to the total cost for the product if the customer's shipping address is within California.
We need it to be an extra add-on fee that gets added to the total cost of the order, after taxes.
This amount does not get affected by any discounts or taxes.
I'm not sure if a solution for this could be coded using an app, or if it could be coded into Shopify using scripts since they are on Shopify Plus, but I would like to know if you could possibly see a way you could help us deliver a solution for our client.
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hello, i am shopify expert and i am ready to start work on your project i got the concept of this tax calculation and ready to start work thanks.............................
HI there, I have gone through project details, AS per given details we need to research more on this, yes we have experience in shopify PLUS and shopify private/public app development. Thank you