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Use Cases

Collect Excise Taxes on Regulated Products in Shopify

Automatically add excise duties to alcohol, tobacco, and other regulated products at checkout. Magical Fees keeps your store compliant by applying the correct per-unit or percentage-based excise tax every time.

Below we cover what excise taxes means for Shopify merchants, how Magical Fees & Tariffs handles the setup, and links to setup guides and detailed articles.

Excise Taxes: Excise taxes are government-imposed taxes on specific regulated products, charged per unit rather than as a percentage of price. They are common on alcohol, tobacco, fuel, and cannabis. Unlike sales tax, excise tax is often built into the product price or shown as a separate line item. Merchants selling these goods must charge the correct rate by product category and jurisdiction.

See it in action

Watch how Magical Fees & Tariffs handles excise taxes on a live Shopify store.

How to Collect Excise Taxes on Shopify

How it works

Getting excise taxes running with Magical Fees & Tariffs takes just a few steps.

Install Magical Product Fees

Install Magical Product Fees from the Shopify App Store and activate the free trial to begin configuring fees on your store.

  1. 1

    Install from the Shopify App Store

    Visit the Magical Product Fees listing on the Shopify App Store and click "Add app" to install it on your store. The free trial gives you time to configure and test before committing.

  2. 2

    Open the app and start a new fee

    From your Shopify admin, go to Apps and open Magical Product Fees. Click "Create fee" to start setting up your first fee rule.

  3. 3

    Choose your fee method

    Select the Function Method (recommended for most stores — fees appear as part of a product bundle at checkout) or the Block Method (fees appear as separate line items — preferred for stores that need discounts to apply to fees).

How to Charge Excise Taxes on Shopify

Add excise taxes to your Shopify store in three steps: install Magical Fees, create excise tax rules with the correct per-unit or percentage rate, then assign to products and test.

  1. 1

    Install Magical Product Fees

    Install Magical Product Fees on your Shopify store. The free trial gives you time to configure your fees and test before committing.

  2. 2

    Create excise tax rules

    Create excise tax rules with the correct per-unit or percentage rate for your product category. Configure product and collection targeting so the tax applies only to alcohol, tobacco, cannabis, or other regulated goods.

  3. 3

    Test with a sample order

    Assign the excise tax rules to the applicable products or collections, place a test order, and verify the excise tax appears as a separate line item with the correct amount.

Ready to get started?

Install Magical Fees & Tariffs on Shopify and see the difference today.

Install Magical Fees & Tariffs on Shopify