How charge and remit sales tax for digital items?

hnewf
Visitor
2 0 0

Hi there,

 

I sell digital products and am trying to sort out the process of charging sales tax and then remitting the sales tax to the proper place. How do others take care of this? Do you need to manually setup the sales tax figure for each state/ jurisdiction? After collecting the sales tax, what do you do with it/ how do you ensure it gets paid to each state/ jurisdiction? How often do you pay it, etc.... Looking for guidance on the entire process- Thanks!

Replies 3 (3)

Victor
Shopify Staff
2509 229 532

Hi @hnewf,

 

This process really varies dependent on where you are based. I'd recommend checking out your local country's tax authority with regards to rules regarding the remittance of sales taxes, or to your state's tax authority if you're based in the USA. Shopify's tax system will help you charge customers the correct amount of sales tax when the customer checks out and you can use our reporting tools to see how much tax has been paid over different periods. I'd recommend reading through our tax documentation to learn more about this process in terms of managing taxes on Shopify.

Victor | Social Care @ Shopify 
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hnewf
Visitor
2 0 0
Thanks so much! It looks like the link provided is specifically for taxes
in Japan- Is there another link available for U.S. sellers?
Victor
Shopify Staff
2509 229 532

Hi @hnewf,

 

The link shared should include a list of tax-related pages for various countries. The specific page for US taxes can be found here and on this page you should see other US-specific links at the bottom.

Victor | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog