Why is the total tax on my Tax Report different to the Sales Report?

Question

When I add up the tax totals in my Tax Report and compare it with the overall tax total on the Sales Report, I get a discrepancy. Why is this happening?

Setup

  • Vend for Mac or PC
  • Shopify

Answer

This can happen when you have Shopify and your Default Tax is 0% ("No Tax"). The tax value on the Tax Report is calculated using the Tax Rate so any sales with "No Tax" will show 0 tax value. All Shopify orders come through to Vend under the Default tax, therefore any tax on the Shopify order will show as 0 on the Tax Report:

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As the Sales Report does not group taxes by name but rather sums up all tax values, the tax from Shopify orders will be included in its tax totals.

Additional Information

Even though all Shopify Sales come through to Vend using one tax name, the actual tax amount is recorded on the sale in Vend.