Setting up and managing Taxes Paid costs for your store
The Taxes and Duties page is where you can set up the tax costs you pay to your government. Taxes paid are considered a cost to your business. Once taxes are set up in TrueProfit, you can start tracking all your costs more accurately and easily.
Taxes Collected is the amount you charge in each order to your customer; it is calculated as an income. TrueProfit will pull this metric from your Shopify Admin settings and add it to your Revenue and Net Profit calculations:
Revenue = Gross Sales – Discounts – Refunds + Taxes Collected + Shipping Charged
Net Profit = Revenue + Tips + Gift Card Sales - Total Cost - Taxes Collected
Taxes Paid is the amount of tax you need to pay to the government. As Taxes Paid is calculated as a cost, it will be added to the Total Cost metric and displayed in the Cost Breakdown section.
Total Cost = Cost of Goods Sold + Handling Fees + Shipping Cost + Ad Spend + Transaction Fees + Custom Spend + Taxes Paid
In the menu bar, click on Calculation and choose Taxes & Duties. Here, you can choose to set up a Fixed Tax amount, or a Custom Tax Rate for your store.
Fixed Tax: A fixed amount of money that will be counted as Taxes Paid.
Custom Tax Rate: A percentage amount that will be taken out of your total Revenue/COGS/Profit to be counted as Taxes Paid.
To start setting up a fixed tax amount, click on the Add Tax button.
In the popup form, enter the Name and Amount of the tax. Then choose the Frequency, Start Date, and End Date for the tax. If your tax doesn't have an end date, click the This is an ongoing cost checkbox to automate the next cycles.
Once you are done setting up your fixed tax, click Add to save it and TrueProfit will start calculating your cost.
To start setting up a custom tax rate, click on the Add Tax button.
In the popup form, enter the Name and the Tax Rate, including the percentage and the money source. Then choose the Frequency, Start Date, and End Date for the tax. If your tax doesn't have an end date, click the On-going checkbox to automate the next cycles.
Once you are done setting up your custom tax rate, click Add to save it and TrueProfit will start calculating your cost.
Once you've added your Taxes Paid, you can filter them by frequency for easy viewing and managing. In the Action column, you can Edit or Delete an existing Tax. After you click Save, TrueProfit will start re-calculating your costs.
What are the differences between Taxes Collected and Taxes Paid in TrueProfit?
Taxes Collected is the amount you charge in each order to your customer; it is calculated as an income. TrueProfit will pull this metric from your Shopify Admin settings and add it to your Revenue and Net Profit calculations:
Revenue = Gross Sales – Discounts – Refunds + Taxes Collected + Shipping Charged
Net Profit = Revenue + Tips + Gift Card Sales - Total Cost - Taxes Collected
Taxes Paid is the amount of tax you need to pay to the government. As Taxes Paid is calculated as a cost, it will be added to the Total Cost metric and displayed in the Cost Breakdown section.
Total Cost = Cost of Goods Sold + Handling Fees + Shipping Cost + Ad Spend + Transaction Fees + Custom Spend + Taxes Paid
How to Set Up Your Taxes Paid
In the menu bar, click on Calculation and choose Taxes & Duties. Here, you can choose to set up a Fixed Tax amount, or a Custom Tax Rate for your store.
Fixed Tax: A fixed amount of money that will be counted as Taxes Paid.
Custom Tax Rate: A percentage amount that will be taken out of your total Revenue/COGS/Profit to be counted as Taxes Paid.
Fixed Taxes
To start setting up a fixed tax amount, click on the Add Tax button.
In the popup form, enter the Name and Amount of the tax. Then choose the Frequency, Start Date, and End Date for the tax. If your tax doesn't have an end date, click the This is an ongoing cost checkbox to automate the next cycles.
Once you are done setting up your fixed tax, click Add to save it and TrueProfit will start calculating your cost.
Custom Tax Rate
To start setting up a custom tax rate, click on the Add Tax button.
In the popup form, enter the Name and the Tax Rate, including the percentage and the money source. Then choose the Frequency, Start Date, and End Date for the tax. If your tax doesn't have an end date, click the On-going checkbox to automate the next cycles.
Once you are done setting up your custom tax rate, click Add to save it and TrueProfit will start calculating your cost.
Managing Your Taxes Paid
Once you've added your Taxes Paid, you can filter them by frequency for easy viewing and managing. In the Action column, you can Edit or Delete an existing Tax. After you click Save, TrueProfit will start re-calculating your costs.
Updated on: 19/02/2024
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