Our business is based in Illinois, and taxes have been setup for this state.
However, we noticed that shopify is not collecting the required taxes for customers outside of illinois.
The state of Illinois requires that we charge sales tax on ALL sales from customers that live outside of Illinois at a rate of 6.25%.
Currently it is IMPOSSIBLE to set this up.
This needs to be fixed immediately!
Thank you for reaching out to the Community! I can certainly provide guidance on setting up taxes for the state of Illinois. As Illinois is an origin state with special tax rules, you will want to refer to our US Tax Reference Documentation for further insight on what this entails.
Shipping specifically is not taxable if the actual cost of shipping is listed on a separate line on the invoice and there is a choice of means to get the product (i.e local pick up). You can however, choose whether you'd like to charge taxes on shipping.
Illinois also follows Origin Souring rules for sales within the state and Destination Souring for out-of-state sales. The breakdown of this, can be located within our Tax Sourcing guide and outlines:
To set up taxes for Illinois, you will want to ensure you have registered with the tax agencies and have your Sales Tax ID. Once this has been completed, you can begin setting up your taxes by:
For more information on setting up your taxes, you can check out our Setting Up US Taxes documentation. Please be sure to consult with your local tax authority or tax professional to verify taxes are charged correctly, and to ensure you file and remit your taxes correctly.
Please let me know if you have any other questions!
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