Tax help please

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Tourist
23 0 3

Hey guys,

I've had my store up and running for a little while now and ive had a decent amount of traffic from other countries such as Australia and Canada. I added a couple of shipping zones to my store and instantly i ended up getting a few international orders.

What i am wondering is what is my job to take care of taxes on these products? Ive read around and it all seems to be a bit confusing for me. My main questions pretty much are..

1. On the "Taxes" page do i need to change the "country tax rate" numbers? if so where do i find the rates

2. Do i have to report quarterly sales also?

Im pretty new and confused so any help is appreciated!

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Shopify Staff
Shopify Staff
105 0 21

Hey there,

Taxation is definitely a topic that causes stress to many, you're not alone! Please take the following advice with this disclaimer: I am not an accountant. I've just been around enough Shopify stores to know my way through the sales tax minefield :). 

Since you're based in California, you won't collect taxes on out-of-state orders. This means you won't have to change the country tax rate numbers. For filing quarterly sales tax returns, and for a deeper explanation of why you don't need to charge sales taxes to international buyers, please take a look at this amazing page about the taxation rules for online businesses based in California by TaxJar:
http://www.taxjar.com/states/california-sales-tax-online/#do-you-have-sales-tax-nexus-in-california

I know it's a bit tricky knowing where to get information from. What could also be a good resource for you is your local chamber of commerce. Oftentimes, they will have free consultations with lawyers or accountants looking to drum up business by offering a free session. You could get some good advice from them as well. I hope I was of some help!

Best Regards,

Chris D

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