How do you setup economic nexus in an origin state?

thefoggydog
New Member
5 0 0

Thank you for figuring this out and sharing the answer! It is nuts that Shopify doesn't help more with this.

0 Likes
dizzlebabe
Excursionist
21 0 9

I know. I have to keep hoping they're working on solving this, because you know, it IS the law (correct collection of sales tax), and we're at the mercy of their tools to work the way they should. Fingers crossed they have a solution soon before I have to start collecting in any new states!

0 Likes
Terra
New Member
1 0 0

Since you seem better at this then shopify. I am having trouble getting it to charge tax. I am in Ohio which is an origin state and my accountant told me I have to charge tax but in the shopify set up no matter what I click or override it still only charges those who live in my state. If anyone outside my state shops with me they dont get charged. How can I fix this? Any suggestions? 

 

Thanks

0 Likes
dizzlebabe
Excursionist
21 0 9

So you only have to charge tax in states where you have physical nexus or economic nexus. Sounds like you have physical nexus in Ohio, so you need to be charging sales tax to people in Ohio. Everyone in Ohio, because it is an origin-based state, should be charged the sales tax rate for where your office is located. If you don't have physical or economic nexus in any other state, then you do not need to charge sales tax on any orders being shipped to any other state.

Does that information help?

Robbie3
Excursionist
20 0 17

This seems so basic for Shopify.  I don't understand why they don't have an option to collect taxes for when you have economic nexus.

Robbie3
Excursionist
20 0 17

I can't seem to make an override for an "automated" collection.  It seems to only let me choose collections where products are "manually" added. This makes me sad as we have thousands of variants.  I don't have time to add them all to an "All Collection".

 

Robbie3_0-1618338286888.png

 

0 Likes
dizzlebabe
Excursionist
21 0 9

So you are correct. I believe that at some point, Shopify changed this so that you couldn't set up tax overrides with an automated collection. It has to be manual. We only have about 150 products, so this was not a daunting effort for us. And now, anytime we create a new product, we just use a previous produce that already has this manual collection selected, so every new product automatically gets in my tax override collection.

However, let me say this... Shopify does have an alternative sales tax module available that solves all of these problems. I begged for long enough that once it was available, I was able to get them to add it to my store. So in this new version of sales tax, it knows which states are destination and which are origin based states, and it knows what to do based on the Locations you have set up in your admin preferences.

Maybe if you just write to Shopify support and ask to be switched to the new system for sales tax, they'll do it. And if they do, it will make your life much easier.

0 Likes