Setting up Taxes

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Excursionist
18 0 4

Hi,

I need your help to set up Taxes properly. 

The company is registered in New Jersey, but shipping place is from Virginia Beach. We ship products in a different states.

How can I set up taxes correctly?

Ans also, do I need a Sales Tax ID? If yes, where can I get it?

Your advice is important and urgent for me.

Thanks in advance.

 

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Trailblazer
144 13 33

Hi @Tamo 

First of all, I am not a tax or business attorney and highly recommend that you seek the advice of one to ensure you are properly set up to collect and remit sales tax as required.

With that said...

Generally speaking, you have to be registered to collect and remit sales tax anywhere you have a 'nexus' (anywhere you have any offices, employees, warehouses, etc. doing business). Plus most states have sales thresholds that require you to register to collect and remit taxes when you surpass that state's given threshold. 

You would need to contact the appropriate agency(ies) in the state(s) where you need to register. Usually the department of revenue, department of commerce, state treasurer, etc. It varies state to state.

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Excursionist
18 0 4

Thanks for reaching out!

As for "Nexus", should my home considered as a warehouse because I have all my products there and ship from there too?

 

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Trailblazer
144 13 33

Generally speaking, yes. 

Again, individual states each have their own stipulations & requirements, which is why its best to consult a professional to ensure compliance.

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Excursionist
18 0 4

Although my company is registered in New Jersey, right?

And if I ship products from Virginia I have to set taxes for shipping regarding Virginia State, right?

Okay, I'll try to ask professionals in this field too, but I'll wait for Shopify Community members who had an experience related to this issue before.

Thank you for your advice for sure!

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Trailblazer
144 13 33

You're speaking to a member that has had experience with this.

However, every situation is different due to the various tax laws in each state. I would not rely on casual advice in a forum for this.

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Shopify Staff
Shopify Staff
422 39 114

This is an accepted solution.

Hi @Tamo,

Thank you for reaching out with your question. First of all, @MelsMojoBob has done a great job of explaining the basics here—our advice is always to consult a tax professional if you are unclear of your tax obligations, but generally yes, you'll be registering and collecting sales tax for states were you have a nexus. It is likely that you would have nexuses based in both Virginia and New Jersey based on the information you have provided, and therefore would need to collect sale taxes for orders coming from these states.

As @MelsMojoBob also stated, tax laws vary on a state-by-state basis so you would want do your research into this to determine what your set up needs to be. I would suggest reading our US taxes guide as a starting point, as well as the TaxJar Blog. This site is not officially affiliated with Shopify but I have used and recommended a number of blog posts from this site which I have found helpful. I'd suggest checking out the following articles:

These pages should be of some use to you but, as mentioned, seeking assistance from a tax professional is the best and safest way to ensure you are meeting your tax obligations for your business.

Kind regards,

Victor | Shopify Social Care

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New Member
4 0 0

It is crucial to know all the facts of where you have inventory, employees etc, as well as your sales levels by state.

My company, Goudy Square Consulting, focuses on helping companies solve sales tax compliance so they can focus on growing their business.  I am a CPA/MST and available for a free initial consultation to understand your needs.

Thank you,

Mike

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