Tax treatment: gross vs net revenue

Sales tax in your Shopify order totals can be counted as part of revenue (gross treatment) or excluded (net treatment). The choice changes every margin percentage on the dashboard — match it to how your accountant reports income.

1. Open Settings → Costs → Tax treatment.
2. Pick one:
   • Net of tax (default) — tax collected is excluded from revenue. Profit and margin reflect only what the business keeps. This is the most common setup for US-based stores.
   • Gross with tax — tax is included in revenue and shown as a separate cost line. Useful if your accounting flows treat tax as a revenue pass-through.

Switching modes recomputes every period instantly; historical orders are not double-counted. If you're not sure which is right, ask your bookkeeper or accountant — they'll have a strong opinion.

Stores with no sales-tax collection (e.g. Canadian GST/HST inclusive pricing) can leave this at the default; the tax line just shows $0.