Charging Sales Tax For Items Shipped To Different State Than Nexus

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New Member
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Hi everyone,

My business is registered with the state of North Carolina, this is where we have our tax ID. So far, sales tax seems to only be charged on transactions that will be shipped within North Carolina. Sales tax has not been charged on items going elsewhere in the US. I have searched Shopify high and low to figure out a solution to how I can charge sales tax on every transaction, regardless of its destination. Please help!

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Shopify Staff
Shopify Staff
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Hey, @Simplybeauty!

At the moment, you can only collect sales tax in states where you have a physical or economic nexus. If you are only registered in North Carolina and that is the only place you have a tax ID for, you can only collect sales tax there at the moment. However, you can start collecting taxes in other states once you've registered with the appropriate tax authority!

To get started, you can go to Settings > Taxes and click Edit on The United States (where you're already collecting tax). You can go ahead and click 'Add Tax Registration' to add a state to collect sales tax in without the ID for that state for the time being; so you can add in the state but leave the tax ID blank for the moment. I would advise that you reach out to your local tax office for advice on getting tax IDs to add there as soon as you get them, they can give you more information!

I'd recommend also checking out more info on tax references per state here, and a list of Tax Experts you can reach out to for assistance here. As I mentioned above, your local tax office could also give you some advice on this matter.

 

Let me know what you think!

Ava
Social Care | help.shopify.com

Ava | Social Care @ Shopify
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Hi! I received a notice from TaxJar that I needed to remit my sales tax to Pennsylvania, where I do not have Nexus nor have I set that up with Shopify. I followed your instructions for editing my tax settings and it shows that right now I am only collecting tax for Ohio. Why did Shopify collect sales tax for Pennsylvania? I have not met the threshold for PA, what should I do with the $3 in tax Shopify collected? 

Thank you for your help!

Natalie

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Shopify Staff
Shopify Staff
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Hey, @NataliePinkMoon!

Oh, that does sound odd; if you don't have taxes set up for Pennsylvania, then we shouldn't have collected Pennsylvania taxes. It could be a possibility that is that there was an order in the admin where the address was changed after it was placed, but it can be hard to judge what the root of this issue could be without digging a little deeper. It may be worthwhile to reach out to the developers of the TaxJar app here to find out exactly how they pull information from the Shopify admin into the app. Just to make sure they are pulling the correct information! 

In the meantime, I'd like to look into this further for you now with the help of our Financial Services team. I've reached out to the email address linked to your Community Forums account here, would you be able to reply to that email? If you can, I'll be able to authenticate you as the account owner so I can look into this issue for you. You should see my email in your inbox under ticket #20585634. If you can reply to that email, we can get started!


Speak soon! 

Ava
Social Care | help.shopify.com

Ava | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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