Custom Tax Mapping

For certain jurisdictions, tax rules require different treatment for product sales. The Setup Tax page lets you control how taxes collected in Shopify are translated into Xero tax rates and types for product  amounts. You can set defaults and create custom mappings so product sales are taxed correctly by rate, tax type, and — if needed — by country or province/state.

Default Tax Settings

What it does: Sets the Xero tax type that applies when no specific mapping exists.

How to use

1. Go to Default Tax Settings on the Setup Tax page.
2. Tax on Income — pick the Xero tax type for taxable income.
3. Tax Free Income — pick the Xero type for tax-free income.
4. Click Save in that section.

Note: Defaults apply to all taxes unless a specific mapping override is created.

Country & Province Tax Mapping (Optional)

What it does: Lets you map taxes by country code and/or province/state code for location-specific rules.

How to enable

1. In the Country and Province Tax Mapping section, toggle the feature On if you need location-level mappings.
2. When enabled, each tax mapping can include country and/or province code entries.
3. Use the provided reference table for valid country and province/state codes.

When to use: Enable only if your tax rules differ by country or state/province (most users can rely on defaults and per-rate mappings).

Tax Mapping Overrides

What it does: Create custom mappings that override the defaults tax settings.

The table shows:

• Tax Title — Shopify tax name (click to edit)
• Xero Tax Rates — percentage(s) and mapped Xero tax type(s)
• Country Codes — location mappings (if enabled)
• Province Codes — state/province mappings (if enabled)
• More — opens the full edit modal
• Delete — removes the mapping

Add a new tax mapping

1. Click Add Tax Mapping.

   In the modal:

   • Title — enter a name (e.g., “California State Tax”). Titles must be unique (case-insensitive).

     Tax Rates — add one or more rates:

     • Click Add tax rate.
     • Enter the percentage (0–100).
     • Select a Xero tax type from the dropdown.
     • Remove unwanted entries with Remove.
   • Country Codes (if enabled): click Add country code, enter code (e.g., us), select a Xero tax type.
   • Province Codes (if enabled): click Add province code, enter state/province code (e.g., ca , co ), select a Xero tax type.
2. Click Add to create the mapping (or Cancel to close without saving).

Edit an existing mapping

• Click the mapping’s Tax Title or the More button.
• Make changes in the modal and click Save (or Cancel to discard).

Delete a mapping

• Click Delete for the mapping you want to remove.
• Click Save at the bottom of the Tax Mapping Overrides section to confirm the deletion.

Frequently Asked Questions

Q: What happens if I don’t create any tax mappings?

A: The app will use your default tax settings.

Q: Can I have multiple tax rates for one tax title?

A: Yes — add multiple tax rate entries inside the same mapping.

Q: Do I need to enable Country and Province Tax Mapping?

A: Only enable it if your tax rules change by country or state/province. Most merchants do not need it.

Q: Can I change a tax mapping after saving?

A: Yes. Click the tax title or the More button and edit it at any time.

Still lost? We can help.

Given the complexity of some tax rules and mappings, we’re happy to help you work through your Shopify to Xero setup. Reach out for a quick chat and we’ll help you pick the best mapping approach for your workflow.