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Business central -> Shopify - Tax Area Priority

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Hi everyone,

In my shopify shop in business central, what does "Tax Area Priority" mean and what does it do?

I'm not sure of which option I should use?

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Dynamics 365 Business Central

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Sohail Ahmed 11,086 Super User 2025 Season 2 on at

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Business central -> Shopify - Tax Area Priority

In Business Central's Shopify connector, "Tax Area Priority" determines whether tax settings from Shopify or Business Central take precedence when syncing orders.

Shopify: Taxes from Shopify (e.g. based on Shopify's tax engine) will be used in the sales document created in BC. Use this if Shopify is handling all tax calculations.

Business Central: BC will calculate taxes based on its own tax setup (Tax Areas, Tax Groups). Choose this if you want BC to manage and validate taxes.

✔️ Choose Shopify if you trust Shopify's tax logic and want exact alignment with what the customer saw at checkout.

✔️ Choose Business Central if you're required to follow localized tax rules or need detailed VAT reporting inside BC.

✅ Mark this answer as verified if it helps you.

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Gerardo Rentería Ga... 23,574 Most Valuable Professional on at

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Business central -> Shopify - Tax Area Priority

Hi, good day
I hope this can help you, and give you some hints.

Set up taxes for Shopify connection - Business Central | Microsoft Learn

Shopify connector Tax Area Priority

Best Regards
Gerardo

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YUN ZHU 92,445 Super User 2025 Season 2 on at

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Business central -> Shopify - Tax Area Priority

Hi, hope the following can give you some hints.

https://learn.microsoft.com/en-us/dynamics365/business-central/shopify/setup-taxes#other-tax-remarks

https://www.youtube.com/watch?v=11PLbgVk2Wk

Thanks.

ZHU

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Mansi Soni 8,869 Super User 2025 Season 2 on at

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Business central -> Shopify - Tax Area Priority

Hello,

In Business Central, the Tax Area Priority setting in the Shopify shop configuration determines the order in which the system selects the appropriate tax area for a sales transaction when multiple sources provide tax information - such as the Shopify shop itself, the customer card, or the shipping address. This is important because the tax area directly influences which tax codes and rates are applied to the order.

For example, if your business calculates tax based on the shipping address (which is common for U.S. sales tax or international VAT), then setting the priority to "Ship-to Address > Customer > Shopify Shop" ensures the most accurate tax application. On the other hand, if Shopify is handling tax calculation and you're simply recording it in Business Central, then "Shopify Shop > Customer > Ship-to Address" might be more appropriate.

The correct option depends on how your organization handles tax collection during checkout and where the most reliable tax data comes from. Selecting the right priority ensures accurate tax postings and compliance with local tax laws.

Hope this answer will help you!

Regards,
Mansi Soni

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