Shopify does not charge taxes by default for lots of reasons. For one, Shopify has no clue where you’re located. Different countries, states, and regions all have different tax rates. Taxes are something that you need to set up and closely monitor through Shopify.
There are three possible causes as to why taxes are missing on your orders and invoices: Country tax rate is not configured properly. Product is not set as taxable. Customer is set as tax exempt. Go to Settings → Taxes in your Shopify store admin. Click on the country, then enter the country tax rate.
This of course begs the inquiry “Why are my taxes not working on my Shopify store?”
It may happen that your store is not set to collect tax on the orders. For example, in the EU, you need to charge different tax rates depending on your taxable turnover on your online store. Shopify then calculates the tax rate automatically based on the type of registration set in your tax settings.
In your Shopify admin, go to the Settings → Taxes page. In the Tax regions section, set up the tax collections based on the type of tax registration of your business and the country you’re VAT-registered in.
Why is the customer set up as tax-exempt on my store?
The customer is set up as tax-exempt. It may happen that your store is not set to collect tax on the orders. For example, in the EU, you need to charge different tax rates depending on your taxable turnover on your online store. Shopify then calculates the tax rate automatically based on the type of registration set in your tax settings.
Why are there no taxes on my invoices?
Taxes are missing because: the customer is set up as tax-exempt. It may happen that your store is not set to collect tax on the orders. For example, in the EU, you need to charge different tax rates depending on your taxable turnover on your online store.