Crossed the threshold - What to do?

LindaCooper2007
Visitor
1 0 0

Has anyone dealt with this message? Do I have to collect taxes since I've crossed the threshold of 5 US States? I'm Non-US citizen and obviously don't have a tax ID. Any help please?

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Replies 2 (2)

Victor
Shopify Staff
2449 226 522

Hi @LindaCooper2007,

If you're selling in the United States, you typically only need to charge and remit sales tax when you are deemed to have a tax nexus in a state. While a tax nexus can be based on physical factors, such as your business being located in a state or having employees, products and locations there, tax nexuses can also be defined in economic terms. You might be seeing this message because your business has met certain economic thresholds—such as making a certain number of orders or earning an amount of revenue from customers in a state—that means you are now required to register for sales tax in those states, so that you can charge customers tax on your orders and remit that tax to the relevant tax authorities.

I would recommend viewing the states in question by clicking on the "View states" button, and reviewing our US taxes reference. This document outlines tax registration thresholds and laws for different states in the US. If you are unsure of your liabilities, or how to go about registering for sales taxes in different states, you should consult a tax professional for further guidance on how to proceed.

Victor | Social Care @ Shopify 
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Tineo9
Visitor
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Crossing the Threshold occurs when the hero leaves his or her Ordinary World and enters a new, dangerous world. This crossing may occur willingly or unwillingly, and before or after the Meeting the Mentor step.