In line with accounting principles, OrderMetrics excludes tax from your revenue number. This is because tax is a liability that is owed to the respective tax authorities.
For example, if someone orders a product worth $100, and you charge a 10% tax on top of it, the customer would pay a sum of $110. However, your revenue for this order would be $100.
Where does tax data come from?
OrderMetrics pulls your tax data from Shopify. We do not offer features to customize tax rules on our end. If you’re looking to change your tax settings, head over to the Settings section in your Shopify admin and click on Taxes.
Q: The prices on my store are tax-inclusive. Does that mean OrderMetrics works differently for me in terms of taxes?
No, regardless of how your taxes are configured (inclusive or exclusive), they will be excluded from revenue. That said, the tax amount may differ depending on it being exclusive or inclusive of the retail price.
For example, if we have a product priced at $100, and a tax rate of 10%, the tax amount for an order with 1 unit of this product will be:
$10 if the tax is exclusive of the retail price
$9.09 if the tax is inclusive of the retail price
This is because in the “tax inclusive” case, the tax amount must be included in the $100, not calculated as a percentage of the $100.