I sold an item through my google channel to a person in my state of California. Usually I receive the taxes in my bank account which I will later pay to the state. This item sold through my google search listing directly. This time it says google tax and they took the 9% from my bank deposit as a $10.45 adjustment. Is google paying the tax for me? Or is this just a fee and now i also have to pay taxes?
Google is a marketplace facilitator. They are responsible for collecting and remitting the sales tax to the taxing authority. You will get the sales tax from the customer via Shopify Payouts but later on Google will collect it from Shopify through a Shopify Payout adjustment. In the end, any orders purchased through the google sales channel will not have a tax liability to you.