Do I only charge taxes to my state residents

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New Member
2 0 0

i don't make many sales and wasn't aware of taxes, don't I need to make a certain amount to have to pay taxes?

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Shopify Staff (Retired)
Shopify Staff (Retired)
338 0 55

Hi Lori,

Taxes are dependent on where you live. Chances are that yes, you need to pay taxes to your government if you're running a business. What taxes you need to set up? I'm not sure.

If you are located in the United States your taxes will be set up automatically for you, as long as you have this option selected on your products in your admin:

And a physical location set up under "Settings" -> "Taxes" -> "United States":

If you're not in the United States, you can find more info on setting up taxes here:

https://docs.shopify.com/manual/taxes

 

 

Alicia | Support Lead for Shopify
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Shopify Staff
Shopify Staff
143 0 18

Hey Lori,

John here from Shopify. 

You would get a 1099K form from us if you did $25,000 or more in sales on Shopify Payments. 

For more info on taxes, we also have this great blog "Should You be Charging Sales Tax on Your Online Store?". Check it out! :)

John

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New Member
1 0 0

Any way to bulk edit all listings to charge tax rather than having to click each listing?

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Shopify Staff
Shopify Staff
143 0 18

Hi Dennis,

You have the option of bulk editing in your admin, but you'd have still have to click to charge taxes. The convenience would be that it's all on the same page so it saves you time going through each product page. 

The next fastest way would be to export your product's CSV file, edit it, then import it back in. The Variant Taxable column would need to be set to "TRUE".

I hope this helps. If you have any other questions, don't hesitate to reach out. :) 

Cheers,

John

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New Member
2 0 0

Hi Lori,

I believe you are referring to charging sales tax to customers.  Sales tax is driven by what is called nexus.  In a nutshell, nexus is where your business has a significant business presence.  A significant business presence can include:

  • Offices
  • Employees
  • Sales Reps
  • Property (including inventory)

Many small businesses only have sales tax nexus in their home state.  However, if you have inventory stored in an out of state warehouse this can trigger your business to have sales tax nexus in that state too.

 

You should collect sales tax on any sales from customers that reside in any states that you have sales tax nexus.

 

Hope that helps.

 

Michael

 

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Excursionist
20 0 5

Unfortunately nothing is set automatically. The automatic setting is for the US only. If I'm based in the US but dropship from China to other countries (like Canada and Australia, for example), do I need to charge my buyers taxes in those countries or not? There is no explanation and no automatic settings whatsoever. 

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