Applying Tax Retrospectively to Orders

Jon Bolt
Jon Bolt
  • Updated


This article will detail how to put in place a feature that allows the marketplace to apply tax retrospectively to orders in Onport. The feature is designed to apply tax after an order has been created, rather than setting the tax live in the cart. However, it will ensure the tax is correctly applied before any vendor receives their purchase order, ensuring the data they receive has the taxes already adjusted.



❗️When integrating Onport with channels like Shopify or Saleor for your marketplace, please note that these platforms may not accurately calculate taxes as required. This issue arises due to many of these platforms not accounting for varying tax rates and sales tax eligibility for items, particularly if the marketplace model involves vendors invoicing customers directly rather than the marketplace doing so.

In some cases, the marketplace may need to apply tax selectively based on the vendor and country, which may not be feasible in Shopify or Saleor. These platforms generally assume that the marketplace is responsible for applying taxes and do not support per-vendor tax granularity.


Applying the feature in Onport


Step 1: Navigate to Integration Settings

  • Go to  Integrations > Select your channel type, e.g., Shopify > Click on the store name;
  • Click on the Order Processing tab. Near the bottom, you will find the tax setting:



Step 2: Set Up Your Tax Rate

  • If you haven't set your tax rates yet, go to Setup > Tax Rates;
  • You can use the same tax rate across multiple vendors if the tax rate percentage is the same. For instance, set up a single UK VAT tax rate for all vendors.



Step 3: Apply Tax Rates Per Vendor

  • You'll be able to set a tax rate per vendor as shown below.
    • If no vendor is selected, the sales tax on the order won't be affected;
    • If no tax is being applied by your channel, leaving out a vendor will mean the tax rate will effectively be 0%;



Important Notes

❗️The settings above will not change any orders retrospectively. They will only impact new orders being imported from your store.

❗️Make sure to review your tax configurations regularly to ensure compliance with local tax regulations and to avoid any discrepancies.

  • By following these steps, you can ensure that the correct tax is applied retrospectively to orders, providing more accurate financial records and compliance with tax laws. 

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