This article outlines how Link My Books allocates and assigns tax line items from Shopify orders to accurately account for them.
For orders shipped to the United Kingdom, Australia or New Zealand
Tax Lines in orders where the country is GB, AU or NZ will be merged into:
Shopify Sales - Principal.
Shipping Tax Lines in orders where the country is GB, AU or NZ will be merged into the Shopify Sales - Shipping.
For orders shipped to the United States or Canada
United States Tax Lines will be allocated to Shopify Sales Tax - Sales Tax-US.
Canadian Tax Lines will be allocated to Shopify Sales Tax - Sales Tax-CA.
For orders shipped to other countries
All other countries Tax Lines will be allocated to Shopify Sales Tax - Tax.
For orders where you (the seller) are not responsible for tax
💡 The channel_liable field informs merchants that another party is responsible for sales tax remittance, which then helps merchants better understand the tax that they are responsible for.
If channel_liable is true then Tax Lines will not be merged and regardless of destination country will be allocated to:
Shopify Sales Tax - Tax Collected
Shopify Sales Tax - Shipping Tax Collected.
For these orders there will be a corresponding line item for the tax remitted allocated to:
Shopify Sales Tax - Tax Remitted
Shopify Sales Tax - Shipping Tax Remitted.
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