Financing, tax rates, and accounting
Hello! Can somebody please help me figure out how to add tax to every order. Right now it is only adding tax to orders originating in my state (NM). As of July 1 2020, NM residents are to charge Gross Receipts Tax to all world wide web orders, including orders with a shipping address outside of NM. I set up an override but it is still only charging tax to NM orders. And yes, I know sales tax isn't charged unless you have nexus in another state, but this isn't technically sales tax as it is gross reciepts tax.
"New Mexico legislature has, effective July 01, 2020, amended the Gross Receipts and Compensating Tax Act to eliminate NMSA Section 7-9-57.1 — the portion of the Act which allowed for the deduction of receipts from sales by New Mexico-based sellers to customers with addresses outside the State of New Mexico."
Did you get any help? I live in NM as well and I don’t even know if we need to charge tax as I haven’t been.
I am having the same problem and no one can talk to Shopify anymore.
I have had a website for years and have charged NM sales tax without problem. Now I am having a terrible time figuring out how to configure all the municipalities on Shopify. Is there someone who can help us?
New Mexico is an origin state. New Mexico doesn't actually have a sales tax, it has a gross receipts tax that is often passed on by merchants.
Gross receipts tax nexus in New Mexico can be triggered by a number of factors. The most common include having a physical location (office, warehouse, plant, etc.) within the state, having employees within the state, or conducting marketing activities within the state.
New Mexico is attempting to pass legislation that would compel merchants located outside of New Mexico, who are selling into New Mexico, to pay gross receipts tax on their New Mexico sales.
Shipping is taxable.
Did you find the contact us page? I finally did after messaging them on Facebook. https://help.shopify.com/en/questions#/contact
As a bookkeeper, I would suggest contacting Avalara (or TaxJar). avalara.com
I have partnered with them because they are one of the top recommended tax services for bookkeepers specializing in e-commerce.
Avalara integrates with Shopify. They have multiple services but the basic one would compute taxes and I think would track nexus but do call and ask.
New 2021 law for NM GRT makes it more time consuming and difficult.
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