Articles on: Using Downpay

Taxes & Shipping on deposit orders

Learn how taxes an shipping are charged when products are paid with a deposit.



On this page:


Taxes
Tax on orders with only partially paid products
Tax on orders with partially paid and fully paid products

Shipping
How to charge for shipping
When shipping is charged

Taxes



Downpay relies on Shopify's taxation engine rules. Taxes are charged per product and cannot be set as a split payment to match a product's deposit amount. This section will explain the current structure of taxes when working with deposit payments.

Tax on orders with only partially paid products



Taxes on an order that only has partially paid products will always fully defer to the remaining balance



Tax on orders with only partially paid products



Taxes on an order that has both fully paid and partially paid products will behave as follows: fully paid product tax will be charged on the due today balance, partially paid product tax will be deferred to the remaining balance.



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Shipping



In this section, we will discuss two concepts around shipping for products purchased with deposits:
How to charge shipping in deposit products
When shipping is charged for deposit orders and mixed cart orders.

How to charge for shipping



There are two ways to charge shipping for deposit products, with the default method charging for shipping based on fulfillment due date. This global setting can be changed in the Downpay settings page.



Merchants who prefer to ship products as they become available



By default, shipping for products with a deposit are charged based on their fulfillment due date. The fulfillment due date is set by the deferred payment due date that was chosen in a Downpay purchase option.



Merchants who prefer to ship all products together



Some merchants may want to reduce shipping charges for products in the cart if they always ship all products together when they are all available to be fulfilled. For this use case, there are two options:

Assign all products to the same purchase option in Downpay . This method works very well when extra shipping is charged of add on products or product options tied to a main product.

This option requires use of a cart page, versus a cart drawer. This option will retain the Scheduled or On hold order fulfillment statuses in the Shopify admin.

Set Downpay's global shipping setting to Charge one price for shipping.

This option will not use different fulfillment statuses and all products will be marked as Unfulfilled. To use statuses, create a Shopify Flow workflow to place fulfillment orders on hold.

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When shipping is charged



Shipping cannot be partially charged to match a product's deposit amount. Depending on the items in the cart, it will be charged all at checkout, or in the remaining balance based on rules dictated by Shopify's checkout.

Shipping can be adjusted using Shopify's order editing capability.

Shipping on orders with only partially paid products



Shipping on an order that only has partially paid products will always fully defer to the remaining balance.



Shipping on orders with partially paid and fully paid products



Shipping on an order that has both fully paid and partially paid products will always charge the shipping cost at checkout.



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Updated on: 04/07/2024

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