eBay → Shopify Tax Handling Logic

🧠 Core Concept

Tax behavior depends entirely on who is responsible for collecting and remitting tax — eBay or the Seller.

This is controlled via:

• eBay marketplace rules (region-based)
• App setting: eBay is liable to collect and remit tax on your behalf

⚙️ System Behavior

Case 1: eBay is Liable (Default)

Condition:

• App setting = ✅ Enabled

App Action:

• Send: channel_liable = true

Shopify Behavior:

• Does NOT calculate tax
• Assumes tax is handled externally (by eBay)

Outcome:

• Prevents double taxation ✅

Case 2: Seller is Liable

Condition:

• App setting = ❌ Disabled

App Action:

• Send: channel_liable = false

Shopify Behavior:

• Calculates tax using Shopify tax settings

Outcome:

• Seller is responsible for tax handling

Updated on: 24/03/2026