Fees are created as products in your store. The method for controlling tax settings depends on whether you're using a Function or Everywhere fee, or a Block fee.
How to update tax settings on a Function or Everywhere fee:
- In your Shopify admin, go to Online Store > Apps and open Magical Fees.
- To edit an existing fee, open it from Fees and click Customize this fee. To create a new fee, click Add fee and pick a template or Create custom fee.
- Under What it charges (where you set the price), find the Charge tax on this fee checkbox.
- Uncheck the box to stop taxes from being applied to this fee, or check it to apply taxes.
- Click Save.
Note: Order fees applied to the total order amount cannot be taxed and this setting will be automatically disabled.
How to update tax settings on a Block fee:
- In your Shopify admin, go to Products.
- Search for the fee by name, or filter your products by Product Type "Fee."
- Open the fee product you want to update.
- Under Price, uncheck Charge tax on this product.
- Click Save.
This will stop taxes from being added to your fees.
Always label deposits separately for compliance
Display bottle deposit fees as a clearly labeled, separate line item at checkout and on receipts. This meets regulatory transparency requirements, builds customer trust by showing exactly what they're paying, and makes it significantly easier to track deposits for reporting and audits. Use a clear label like "Bottle deposit" or "Container deposit (CRV)" so customers immediately understand the charge.
Originally from our Help Center