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Destination State Sales Tax

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2SAAB
New Member
1 0 0

Hi- A few questions regarding the set up of Sales Tax in Shopify. 

We are in a destination state, so we need to tax various rates based off of where we are shipping to. I have set up my state in the tax set up. Does Shopify have the various rates within each state already loaded into the system to calculate? Or is this something I need to do? We will also be shipping to other states, so same questions. Are those tax rates automatically calculated in the system? Or what do I need to do to set that up?

 

If I need to create Overrides, please share how to do that. I am only able to see where to create shipping overrides for states. 

 

Please advise on how Shopify works with destination states, what is automatically set up with Shopify's system, and if there is anything I need to manually set up. 

Thanks!

 

Accepted Solution (1)

Accepted Solutions
Victor
Shopify Staff
Shopify Staff
1461 140 333

This is an accepted solution.

Hi @2SAAB,

Thank you for getting in touch. If you have a tax nexus in a state that uses destination-based tax system, Shopify will automatically calculate and charge the customer the appropriate tax amount based on the shipping address provided. Shopify has an internal tax database that is used for the calculation of state, county and city taxes. You would not need to manually add rates unless you had a specific reason to do so, and the key thing is that you provide Shopify with any and all locations and addresses that may serve as tax nexuses in US states. The automatic tax system can then work as intended.

You can read more about setting up US taxes in Shopify here. You can also place some test orders on your store if you'd like to see the automated tax system being used in practice. 

Please let me know if you have further questions!

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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Replies 9 (9)
Victor
Shopify Staff
Shopify Staff
1461 140 333

This is an accepted solution.

Hi @2SAAB,

Thank you for getting in touch. If you have a tax nexus in a state that uses destination-based tax system, Shopify will automatically calculate and charge the customer the appropriate tax amount based on the shipping address provided. Shopify has an internal tax database that is used for the calculation of state, county and city taxes. You would not need to manually add rates unless you had a specific reason to do so, and the key thing is that you provide Shopify with any and all locations and addresses that may serve as tax nexuses in US states. The automatic tax system can then work as intended.

You can read more about setting up US taxes in Shopify here. You can also place some test orders on your store if you'd like to see the automated tax system being used in practice. 

Please let me know if you have further questions!

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

jessnava
Tourist
5 0 1

Hi I'm going through the same thing. Would you have a video recording I could watch as reference? thank you! 

Victor
Shopify Staff
Shopify Staff
1461 140 333

Hi @jessnava,

Thanks for getting in touch. Can you tell me a bit more about your situation, and for which states you need to enable taxes for? I'd be happy to offer some more tailored advice if you can provide me with more information about your store and your tax obligations. I'd also recommend checking out the comprehensive US taxes guide we have on the Help Center, which covers a lot of the basic information you need to know when setting up taxes on your Shopify store.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

jessnava
Tourist
5 0 1
Hi Victor, i think I figured it out. I thought I needed to collect taxes in every state but turns out I only need to collect for my state now as I don't have nexus in other states. Still learning about nexus.
Victor
Shopify Staff
Shopify Staff
1461 140 333

Hi @jessnava,

Yes, that sounds correct, as you likely will only need to collect taxes in states where you have a tax nexus. This includes having a physical nexus in a state (such as an office or warehouse) or an economic one (such as making a certain amount of revenue from orders made to customers in that state).

I hope you have a better handle on your tax obligations now, but please feel free to reach out again if you have more questions.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

jessnava
Tourist
5 0 1
Thank you so much! This made me feel better!
Victor
Shopify Staff
Shopify Staff
1461 140 333

Hi @jessnava,

My pleasure! Please let me know if you have further questions about this, and have a great end to your week.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

jessnava
Tourist
5 0 1
I am having an issue with my images. When they are uploaded to my store they become dull and not as bright as I edit them. Do you know if this can be fixed? Is it a setting?
Victor
Shopify Staff
Shopify Staff
1461 140 333

Hi @jessnava,

This can happen when the images are displayed on your storefront via your theme, which may compress images to ensure faster loading times on your site. You can read more about compression rates here, which provides guidelines on which image types are the best to use and how your images are compressed depending on the size and quality of the images you are uploading.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog