Hi, i’m 18 years old and it has been a couple months since i have opened my shopifu store. I’m on an american visa in the US so i don’t have an ssn, but i have an ITIN number. I don’t have a lot of sales, probably two or three sales a month. I’m just really confused and i keep reading all these different things. I’ve done a lot of research but i’m still not sure. Do i have to charge and pay taxes? What if i’m not making a certain level of money to pay income tax. Also what is the sales tax? Do i charge chat? If i do, then how can i do so? On my shopify settings i’ve selected it to automatically charge taxes but it doesn’t. Please help me out (sorry this was very long).
Nick here from Shopify.
No worries for the length of your post, these are all very legitimate questions. The first thing I would suggest you do is to visit your local tax office or an accountant about this. Professional accountants in your area would know best about whether or not you would need to charge/ pay taxes. Every country and even within certain countries there are different tax laws, so it is difficult for anyone to say what exactly you need to do and charge/ pay in your particular area based on your specific situation. Shopify does, however, have a guide on what can be said which you might find helpful here.
You mentioned you don't have an SSN but an ITIN. Are you looking to stay and keep your store based out of the USA moving forward or if you move country to change the primary store address to the country you will move to? The reason I ask is because of Shopify Payments. If you are set up with Shopify Payments within the USA and then move country, you would need to maintain your bank account and details in the USA to keep Shopify Payments alive as a gateway for you. Shopify has a great information page on getting Shopify Payments set up with what is required from your end for it.
When you say you have selected the automatic tax calculation do you mean from here? If so, Shopify has a guide for how to set up taxes automatically for the USA also which you might find useful and can see here.
Hopefully, this information helps and gives you an idea of what to do next. Don't hesitate to ask any other questions should you have any.
All the best, Nick