How to set up taxes for US, UK and Australia from Canada?

Palomiempire
Visitor
1 0 0

Hello Members,

 

I hope this message finds you well. I am reaching out to seek guidance on the complex task of setting up taxes for a store based in Canada that caters to customers in the United States, Australia, and the United Kingdom. 

 I have set up taxes for Canadian provinces. Now, I am just confused on how to set up sales tax for these 3 countries considering we need to collect taxes. Do we need to register with each of stated in US to sell in those states? 

 If anyone set these before or have idea on how to set up, please help me out or point me to a direction where I can find more information.

 

Thank you all

Replies 2 (2)

Greta
Shopify Staff
1138 121 146

Hi, @Palomiempire!

 

Thanks for posting in the Shopify Community. For questions like this, I recommend contacting a tax professional in your area as they will be able to review your business and determine exactly where you are required to collect taxes. You also have the option to hire a Shopify Partner who specializes in U.S. sales tax for guidance on tax liability! 

 

I recommend checking out these help documents which have tips for determining your tax liability in the U.S. and the EU, as well as how to add tax rates:

 

 

Please let me know if you have any questions about this and I'd be happy to help!

Greta | Shopify 
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KP_Enterprises
Explorer
60 2 16

A key thing in the U.S. is knowing if you have reached Nexus or not. You are not required to collect sales tax until you reach certain thresholds which are determined by the number of transactions or by the total sales amount or by having a physical presence in the state (I.e. office, warehouse, sales person, etc.) If you search for state nexus requirements, you should find more info.

Filing in each sate can be complicated and frustrating. There are companies who help with that but they can also be frustrating and expensive.