In some countries, it is required that you charge taxes on shipping and handling.
In some cases, taxes need to be charged and displayed on invoices separately even if the shipping cost is a part of the price of the product. This applies to some of the US federal states and some other countries such as India or Singapore.
To set the shipping rates as taxable:
- In your Shopify admin, go to the Settings → Taxes page.
- Check the Charge tax on shipping rates checkbox.
Please be aware that if you make any changes in tax settings in your Shopify admin, only your newly created orders and invoices will reflect this change. Your existing invoices will remain unchanged.