Does Shopify Collect Sales Tax?

July 19, 2023


Hey there! Are you running an online store on Shopify and wondering about sales tax compliance? Well, you're not alone! It's a common concern among online store owners, and I'm here to help shed some light on the matter.

First things first - Shopify does not collect sales tax on behalf of its users. That means it's up to you as the store owner to make sure you're complying with all applicable sales tax laws. But don't worry - Shopify has got your back! They provide several tools and integrations to help you manage your sales tax obligations.

For example, third-party sales tax software integrations like Avalara and TaxJar can automate the sales tax collection process and ensure you're staying compliant with all the relevant tax laws. Pretty handy, right?

However, before you dive into all that, it's important to determine whether you actually have a sales tax obligation in the first place. Sales tax laws can be different depending on where your business is located, and where your customers are too. In the US, sales tax laws are established at the state level, and some states even have additional rules for specific types of products or services.

If you do have a sales tax obligation, you'll need to register with the relevant taxing authority and start collecting and remitting sales tax on all taxable transactions. It can be a bit of a headache, but there are plenty of resources available to help you navigate the sales tax landscape.

So, there you have it - Shopify doesn't automatically collect sales tax, but they do offer plenty of tools and integrations to help you stay on top of your sales tax obligations. Remember, it's your responsibility as the store owner to make sure you're complying with all the applicable sales tax laws. Good luck out there!

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