Understand how Shopify’s tax settings impact default sales prices in Katana.
Background
In Katana, Default Sales Prices (set on product cards) are always tax-exclusive. Taxes are only applied when products are added to a sales order.
In Shopify, you can choose whether product prices are Taxes included or Taxes excluded.
These settings affect how Katana calculates the Default Sales Price when importing products from Shopify.
You can check your Shopify settings under: Finance > Taxes
Shopify store settings (currency, default location, and tax inclusion/exclusion) are updated in Katana once per day. You can also refresh them manually by reconfiguring the integration.
How Shopify settings affect Katana prices
If your Shopify store uses Taxes included:
Katana asks for your default tax rate during integration setup.
Katana calculates the tax-exclusive Default Sales Price by removing the tax portion.
If your Shopify store uses Taxes excluded:
Katana ignores the default tax rate.
The imported price in Katana equals the Shopify price.
Note: The price per unit on sales orders synced from Shopify always matches the product price in Shopify, even if it differs from the Default Sales Price stored in Katana.
Example scenarios
Example 1: Taxes included
Shopify price: $100 (includes tax)
Tax rate: 20% VAT
Katana Default Sales Price: $83.33
Calculation: 100 ÷ (1 + 20%)
Example 2: Taxes excluded
Shopify price: $100 (excludes tax)
Katana Default Sales Price: $100
Quick comparison
Shopify tax setting | Shopify price | Katana default sales price |
Taxes included | $100 (incl. tax) | $83.33 (tax removed, using default tax rate 20%) |
Taxes excluded | $100 (excl. tax) | $100 (no adjustment) |
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