New Shopify Tax Features and Tips

Community Moderator
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You’re probably gearing up for the busiest time of the year, and may be filing your quarterly sales taxes as well. To help save some stress Shopify has compiled some time and money saving features that you can take advantage of today and throughout the rest of the year. 


Simplifying reporting and filing with the new Shopify Tax Sales Tax Report


October is filled with spooks and frights, and taxes, with both monthly and quarterly filing deadlines approaching in many States. Filing is a little less scary when you access the new Shopify Tax US sales tax report in the Shopify admin. Start by selecting the State you’re prepping to file in and find a report that breaks down your gross and taxable sales by county, city and special jurisdiction. You can then filter by the specific quarter, month or custom time period you need – with a full view of 2023 coming soon! Need more information? Select view transactions for a granular list of your transactions and associated taxes collected.


Discover Shopify Tax


Want to automatically set aside sales tax? Shopify Balance can help! 


If you use Shopify Balance to manage your store’s finances, you can now automatically save sales tax in a dedicated Balance account. Balance provides you with a better understanding of your cashflow throughout the year and your funds will be waiting for you when it's time to file.  


Set up Balance 


Get sales tax right in time for Black Friday Cyber Monday (BFCM)


For many businesses, BFCM is the busiest time of the year. To set your store up for success, take a moment to review your tax settings. Here’s are some ideas of where you can start: 


  1. Ensure you’re collecting in each state that you need to: Sales tax insights tracks your sales and orders, providing a clear view of where you may soon be required to collect tax…or risk of not complying with state laws. Have a new liability? Sales tax insights provides instructions on how to register with the state and enable tax collection in Shopify. Remember, its always best to consult a tax expert if you’re unsure about your requirements.
  2. Improve rate accuracy by categorizing your products: Some states have product-specific rules that may result in your products being tax-exempt or subject to a unique rate. Did you know eight states have tax exemptions for clothing sales? Shopify suggests categories for each of your products that you can review, revise, and approve. See a category highlighted in purple? Approve or change the suggestion to begin using it! Once approved, Shopify Tax automatically applies the most accurate sales tax rates and those rates are kept up to date as rules and regulations change. Check out your tax settings page to quickly categorize your products. If you’re not sure which to choose, use the “Preview Rates” feature at the top of the page to test drive a few and see how each affects what rate is applied to an order.
  3. We know folks like things in 3, but that’s our trick and treat to you! You’re off to a great start! Check out the blog for a complete rundown of how to charge sales tax in the United States and more tips for getting the most out of Shopify Tax. 

Remember, it's your responsibility to consult with local tax authorities or a tax professional to verify that you’re collecting the correct tax rates from your customers and to ensure you file and remit your taxes correctly. Plus, most of the tax professionals we know are pretty cool people. 


Jacqui | Community Moderator @ Shopify
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