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Taxes by Zip Code

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# 1
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We are a California based company and we were told by the state that we must tax individuals by the zip code that they reside in. There is a base tax of 7.5% in California and each municipality charges an extra percentage tax on top of the base.

So what do I put into Google Merchant Center. Do I just put California - Google Determined Rate and then set it and forget it?

1 Expert replyverified_user

Re: Taxes by Zip Code

[ Edited ]
Top Contributor
# 2
Top Contributor

tax and shipping are for the accurate display of price information.

generally, yes, setting california within
the account should be all that's required.

however, the best likely course would be to contact google directly
to verify that individual municipality taxes are added -- or if not, if
a per-item per-zip-code override is required in this particular case.

Re: feed specification: hidden/unclear prices

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# 3
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I contacted Google via chat. They were somewhat helpful. I think I will end up calling them for deeper answers.

Either way, we may end up setting our California Tax rates at the default 7.5% (or even 8.0% because of the actual municipality we are in) in our shopping cart and in Google shopping so they will coincide. The rep did say that if the tax were different, even slightly that we could get nixed from Google Shopping.

So we may just end up eating missed revenue. The last question I would have for them is if Google Default Setting reflected different tax rates based on zip code and if so if we could use the same tax auditing service they use so they could match. Hmmmm. Maybe too complicated.

Re: feed specification: hidden/unclear prices

Top Contributor
# 4
Top Contributor

first, thank you for the update.

yes, accurate display means exactly matching what
the user actually pays for the submitted item-offer.

currently. google simply indicates that --
"Google uses tax rates from a third party that are determined based on the shopper’s location."