Shopify not charging sales tax to e-commerce orders, why?

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Tourist
11 0 5

Got my first order today and Shopify didn't charge the customer appropriate sales taxes. I am located in WA and the customer is in OH. The automatic tax option is checked on my account and so I am expecting that all necessary taxes would be billed to the customer. Can you please help me out here as I have to charge sales taxes on e-commerce orders. Thanks. 

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Shopify Staff
Shopify Staff
114 0 17

Hey Andrzej,

Dave here from  the Guru Team :)  

So basically taxes are based on your own physical location when selling online. Customers generally would not have to pay your States taxes when they themselves are located in a different State. You'll note that on other orders in WA the taxes were charged accordingly which is to be expected. 

Here as Guru's we wouldn't be fully knowledgable on local tax regulations and laws so it's best to confirm this with your local Council to confirm what and when you should be charging with regards to taxes to make sure you're fully compliant. 

If there are discrepancies with how you need to charge your taxes you can always do so by creating a manual override and you can also check out this doc  for more information on US Taxes and Policies. 

I hope this helps! 

All the Best, 

Dave | Shopify 

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Tourist
11 0 5

Thank you. This helps and I now also understand the concept of tax nexus on internet sales that are out of home state. While there's a Supreme Court case on our side, States will probably want their sales tax collecte4d eventually so when that happens I hope Shopify sales tax mechanisms would get updated. No worries for now though. Thanks for your reply.

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