For US/Canadian stores, the most common fix is switching from Shopify Tax (automatic) to Manual Tax, then setting your state rate(s) and confirming products are taxable. Workshop must also use a tax rate (tax class) whose percentage matches what Shopify calculates — usually one combined rate, not separate federal/state or GST/provincial lines.
This guide covers both sides: Workshop tax classes first, then Shopify Manual Tax.
Not for mixed VAT via Shopify collections (e.g. IE 23% + 13.5% on one invoice). Use Shopify Collection Tax Overrides instead.
Related: Shopify Sync Failed – Tax Does Not Match — all tax failure types and general troubleshooting.
Why this matters
Symptom in Workshop | What it usually means |
Shopify would calculate 0.00 tax … Workshop has X.XX tax | Shopify is not applying sales tax on the draft order — often because the store uses Shopify Tax without full nexus/automatic setup, or products are marked non-taxable. |
Service lines synced with tax before; adding a catalog product breaks the whole invoice | Common on US stores still on Shopify Tax. Custom/service lines may calculate; linked Shopify products use Shopify's category engine and often return 0.00 on draft calculate until you switch to Manual Tax. |
Error names a product ("… is set to charge tax … but Shopify … not charge tax") | Product-level tax toggle mismatch — see Product tax settings below. |
Workshop does not overwrite your line tax to force a match. Fix Shopify configuration (or align the invoice line), then Retry sync.
Before you start
Shopify Admin access (Settings → Taxes and duties).
Know which state(s) you collect sales tax in and your combined rate (state + local if you charge it). Your accountant or state revenue site is the source of truth — Workshop does not set Shopify's rates for you.
Compare tax-inclusive vs tax-exclusive pricing: Workshop → Settings → Invoice settings → Tax inclusivity should match how prices are entered in Shopify. See Tax rates setup.
Workshop — match your tax rate to Shopify's combined total
Workshop sync does not send separate federal, state, GST, or QST amounts to Shopify. Before each draft order, Workshop asks Shopify to calculate tax on the whole invoice and checks that Shopify's total tax and total price match the invoice.
Each Workshop line carries one tax percentage from a tax rate (tax class) in Settings → Tax rates. Shopify, meanwhile, applies whatever combined jurisdictional rate it has configured (state + local in the US; GST + provincial tax in Canada, and so on) and returns a single tax total.
Both systems must agree on:
What must match | Workshop | Shopify |
Tax percentage on taxed lines | One Standard rate whose % equals Shopify's effective combined rate | Manual Tax rate(s) for the customer's jurisdiction |
Taxable vs not taxable | Standard rate on taxed lines; Zero-rated / Exempt / No tax on untaxed lines | Charge tax on this product on each variant |
How prices are entered | Tax inclusivity in Invoice settings | Product pricing style in Admin |
Use one combined rate — not separate government components
Do not model GST and QST (or state and city) as two Standard rates on the same invoice unless each line is a linked Shopify product with its own rate configured in Shopify Admin — that is advanced and easy to get wrong.
US vs Canada — is there a "federal" part?
United States | Canada | |
Federal tax on retail? | No. There is no US nationwide sales tax on typical bike-shop parts and labour. | Yes. GST (5% federal) applies on most taxable sales, plus provincial tax (QST, PST, or HST depending on province). |
What makes up the rate? | State + local only (county, city, district if you charge them). | Federal + provincial combined into one total Shopify returns on the draft. |
Workshop setup | One Standard rate = state + local combined (e.g. 7.45% Utah, 8.875% California). | One Standard rate = GST + provincial combined (e.g. 14.975% Quebec = 5% GST + 9.975% QST). |
Shopify Admin wording | Manual Tax often shows rates "added to 0% federal tax" — that federal row is always zero for US retail; ignore it. Your real rate is the state (and local) row. | Province tax settings include GST/HST/PST; Shopify still returns one tax total on the draft. |
So one value in Workshop is correct for both countries — but for different reasons. US shops are not missing a federal line; Canada shops are folding federal + provincial into that single figure because Workshop compares total tax, not separate government buckets.
For most shops, create one Standard rate at the combined percentage Shopify actually charges:
Region | What Shopify calculates | What to enter in Workshop |
US — California (example) | Los Angeles area checkout at 8.875% (state 7.25% + local combined in your Manual Tax row) | One Standard rate: 8.875% — not 7.25% state-only if Shopify charges the full combined rate |
US — Utah (example) | Salt Lake City area checkout at 7.45% (state + local combined) | One Standard rate: 7.45% |
Canada — Quebec (example) | GST 5% + QST 9.975% on the same sale → effective 14.975% on the pre-tax subtotal | One Standard rate: 14.975% — not separate 5% and 9.975% classes on the same invoice |
Canada — other provinces | GST/HST/PST as Shopify applies for that province | One Standard rate at the same combined % you use in Shopify Manual Tax for that province |
Rates vary by city and county within a state — use your shop's combined figure in both systems, not a generic state base rate alone.
Your accountant or state/provincial revenue site is the source of truth for the number.
Workshop does not look up rates for you — you enter the figure Shopify will use.
Step A — Set up tax rates in Workshop
Go to Settings → Tax rates.
Add tax rate (or edit your existing Standard rate):
Name: e.g. Standard or Sales tax
Treatment: Standard
Percentage: your combined rate (e.g. 8.875% California, 7.45% Utah, 14.975% Quebec)
Tick Use as the default rate for new lines if this is your main rate.
Add a Zero-rated (or Exempt / No tax) rate for lines that must not be taxed.
Under Line defaults, set Services, Parts / stock, and Collection / return:
Taxed labour and parts → your Standard rate
Zero-rated items → your Zero-rated rate (or set the rate on the stock/service item itself)
In Settings → Invoice settings, confirm Tax enabled is on and Tax inclusivity matches Shopify (tax-inclusive vs tax-exclusive pricing).
See Tax Rates – Setup & Best Practices for line-default behaviour and worked invoice examples.
Step B — Customer address (US and Canada)
Workshop sends the customer's country to Shopify for tax jurisdiction. For United States, Canada, and Australia, state/province and postcode can change which rate Shopify applies.
On the customer record in Workshop, set the correct US state and ZIP, or Canadian province and postal code, before syncing — especially for out-of-area sales.
Step C — Synced Shopify products and tax classes
When stock is synced from Shopify, Workshop maps each variant's Charge tax on this product flag to a tax class on the item:
Taxable in Shopify → the shop's default positive part/stock tax class (usually your Standard rate)
Not taxable in Shopify → an explicit zero-tax class
The percentage on those classes must still match what Shopify calculates. If your Standard rate is wrong (e.g. 5% GST only instead of 14.975% combined), sync will fail even when Shopify and the taxable flags agree.
Per-line overrides in the Tax column are fine for genuine exceptions (exempt labour, zero-rated parts). For Shopify sync, each taxed line's rate should match the same combined % Shopify uses unless you have deliberately configured different per-product rates in Shopify Admin for each linked product.
Shopify — Step 1 — Open US tax settings
Log in to Shopify Admin.
Go to Settings (gear, bottom left).
Click Taxes and duties.
Under Tax regions, click United States (or Manage next to United States).
Shopify — Step 2 — Switch to Manual Tax
Many US stores start on Shopify Tax (automatic, transaction-fee based). Workshop sync uses Shopify's draft-order tax calculation. For predictable rates on both services and catalog products, switch to Manual Tax (free; you maintain rates).
On the United States tax page, find Tax service.
If you see Shopify Tax active, open the ⋯ (three dots) menu on that card and choose Upgrade service (wording may vary — you are choosing which tax service the store uses).
On Upgrade tax service in the United States, select Manual Tax (badge may show Active once selected).
Manual Tax — free; "Tax rates must be set and updated manually for collection in checkout."
Shopify Tax — automated; often returns 0.00 on mixed service + product drafts until fully configured for your nexus.
Save / confirm your choice.
Demo / test stores: If Manual Tax is not visible, use ⋯ → Upgrade service on the tax service card — Manual Tax is available on development stores once you open the upgrade screen.
Shopify — Step 3 — Set your state tax rate(s)
After Manual Tax is active:
Still on United States, scroll to Base taxes (or Manage tax rates).
Find each state (and territory, if applicable) where you collect tax.
Enter your percentage and tax name (e.g.
State Taxor your local label).Use Tax calculation as appropriate for your setup (often "added to 0% federal tax" for a simple state rate).
Repeat for every state you ship to or have nexus in. If you only sell locally, configuring your home state may be enough — confirm with your accountant.
Optionally use Reset to default tax rates only if you intend to repopulate from Shopify defaults (usually not needed if you know your rate).
Tip: Enter the combined rate you actually charge (state + local if applicable) — the same figure you set as your Workshop Standard rate in Step A. Workshop sends the customer's country (and US postcode / state when present) so Shopify can pick the right jurisdiction.
Shopify — Step 3b — Match tax-inclusive pricing (global setting)
On the same Settings → Taxes and duties page, scroll to the global settings at the bottom (below tax regions and duties).
Find Include sales tax in product price and shipping rate:
Checked — Shopify treats product and shipping prices as tax-inclusive (tax is embedded in the price).
Unchecked — Shopify treats prices as tax-exclusive (tax is calculated on top).
This must match Workshop → Settings → Invoice settings → Tax inclusivity. If Workshop is tax-inclusive but this checkbox is off, sync commonly fails with tax and total both a few cents apart (e.g. 12.28 vs 12.25) even when your Manual Tax rate is correct.
Shopify — Step 4 — Confirm products are taxable
Even with Manual Tax enabled, a variant marked non-taxable in Shopify will not pick up tax.
For each product or service line that should be taxed on Workshop invoices:
Shopify Admin → Products → open the product → select the variant.
Find Charge tax on this product (or Tax section) and turn it on if the Workshop line is taxed.
For services billed as custom lines, link them to a Shopify product/service with tax enabled where possible.
Workshop re-reads Shopify variant tax flags on every sync — after changing Shopify, go back to Workshop and click Retry (no separate stock sync required).
Step 5 — Retry sync in Workshop
Open the invoice in Workshop.
Open Shopify Sync.
Click Retry.
If sync succeeds, the draft order in Shopify should show tax aligned with Workshop. For paid invoices with draft orders enabled, Workshop may then complete the draft to an order automatically (depending on your Shopify integration settings).
If sync still fails, note the full error text and continue with the general tax mismatch guide.
Quick checklist
Workshop
Standard tax rate in Settings → Tax rates uses the combined % Shopify will charge (e.g. 8.875% California, 7.45% Utah, 14.975% Quebec — not split federal/provincial or state/local on the same invoice unless you have advanced per-product Shopify rates).
Line defaults (services, parts, collection) point taxed lines to Standard and zero-rated lines to Zero-rated / Exempt.
Tax inclusivity in Invoice settings matches Shopify pricing style.
Customer address has correct US state / ZIP (or CA province / postal code) when relevant.
Shopify
Manual Tax active for United States (not Shopify Tax only).
State rate(s) entered under Base taxes for states you collect in — same combined % as Workshop Standard.
Include sales tax in product price and shipping rate (global setting on Taxes and duties page) matches Workshop tax inclusivity.
Charge tax on this product matches Workshop for each linked variant.
Then
Retry sync from the invoice.
Multi-state and local tax
Manual Tax in Shopify is state-level by default in the Base taxes table. Some shops use county/city/district rates via Shopify's tax settings or apps. If your combined rate differs from a single state row:
Enter the combined rate you actually charge at checkout, or
Use Shopify's tools for local jurisdictions if you already rely on them,
then verify with a test invoice and sync before bulk historical retries.
Workshop compares total tax and total on the draft — local band breakdowns in the error message are diagnostic hints. Configure one combined Standard rate in Workshop to match Shopify's total, not each band separately.
Need help?
If you have worked through this guide and sync still fails with the same figures:
Email [email protected] with your invoice number, shop name, and screenshots of:
The Workshop Shopify Sync error, and
Workshop → Settings → Tax rates (showing your Standard combined %), and
Settings → Taxes and duties → United States (showing Manual Tax + your state rate), and
One affected product variant's tax toggle.
We can also arrange a short call or, with your permission, assist directly in your Shopify Admin to verify Manual Tax and product settings.