Note: If you use the Taxes excluded setting for Sales Prices in Shopify, then you can ignore the tax rates field during Shopify initial connection as it will not have any effect on the data import. If you use "Taxes included" setting in Shopify, then we suggest reading further. You can check your settings in Shopify from "Settings" > "Taxes".
The tax rate setting in the connection configuration of Shopify integration is important for defining Default Sales Prices for products in product cards in Katana. Shopify store settings (Shopify store currency, Shopify default location, Tax inclusion/exclusion) are updated in Katana once a day, and can be manually triggered by reconfiguring Shopify integration.
Price per unit on Sales orders (SO) synced from Shopify will always match the Sales price for a product on a Shopify SO even if it's different from the Default sales price for the product in Katana.
In Katana, default Sales Prices for products (defined on product cards) do not include any taxes. Taxes are added to products on Sales orders.
In Shopify, the user can select whether taxes are included or not included in product prices. Shopify user can change this global store setting in Shopify from "Settings" > "Taxes".
Therefore, how Default sales prices are recorded in Katana for products imported from Shopify is dependent on your tax settings in Shopify.
- If you use "Taxes included" setting in Shopify, then we ask for the default tax rate in order to calculate the Default Sales Price for products in Katana without the taxes.
- If you use "Taxes excluded" setting in Shopify, then we ignore the default tax rate when defining Default Sales Prices for products imported from Shopify.
Example 1
- Shopify store is using "Taxes included" setting.
- Price of a product in Shopify is USD 100 (taxes included).
- Default tax rate is 20% VAT.
- Katana imports product data and sets the taxes excluded Default Sales Price in Katana to USD 83.33 (formula: 100/(1+20%))
Example 2
- Shopify store is using "Taxes excluded" setting.
- Price of a product in Shopify is USD 100 (taxes excluded).
- Katana imports product data and sets the taxes excluded Sales Price in Katana to USD 100.