Financing, tax rates, and accounting
I am based in Los Angeles and in the past I was told Shopify was collecting taxes. When looking at the tax page there are numerous lines of not filed. How can I tell if they are collecting them or not.
Hi, @Canteen!
Thank you for your post, I'm happy to share some information with you.
In order for taxes to be charged on your store, you need to set up your taxes where you are required to collect taxes. To check if you're collecting taxes, you can log into your admin and navigate to Settings > Taxes and duties and select the country or countries where you have tax obligations. Here is an example of the United States taxes section from my test store, showing that I would be collecting taxes in New York:
Shopify uses many default sales tax rates, which are updated regularly. If you use the default rates, then you need to confirm that they are current and correct for your particular circumstances. You can override them whenever necessary. You should always check with a local tax authority or a tax accountant to make sure that you charge your customers the correct sales tax rates, and to make sure you file and remit the taxes correctly. You can find more information in our help document on taxes.
I hope this helps, please let me know if there's anything else I can clarify.
Greta | Shopify
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