This article covers handling of tax when syncing dropship purchases to your dropship provider on platforms such as Shopify, WooCommerce. It does not cover handling of taxes in your store or for the vendor payments. 

Setting the tax rate on a dropship purchase

When syncing orders to your dropship provider (e.g. into their Shopify store), you may want to include a specific tax rate. You'll first need to select which tax rate to sync. Under the "tax" tab in the dropship provider settings, you can either use a manual rate (which can be created under Setup > Tax rates). Or, you can re-use the same tax rate on the customer order. 

As a second step, you'll also need to enable the setting for applying the tax rate when syncing the order into the dropship provider's store. This will be shown once you select one of the options above. 

Updating historic orders

It's currently not possible to update the tax settings in the dropship provider's store once the order has been synced. The settings will only apply to future orders being placed.