Once you reach the sales tax threshold do you need to pay "back taxes" for all prior sales? (U.S.)

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Once you reach the sales tax threshold for a state do you need to pay for sales taxes from that point on or do you need to pay for all previous sales as well? For example, Arizona tax threshold is $100,000 or 200 sales. Let's say I make 200 sales in Arizona. Do I start collecting taxes from sale #200 and up or do I need to also pay for taxes for sales #1 - 199?

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Shopify Staff
Shopify Staff
1424 138 324

Hi @Audra,

I do not know this for sure but my belief is that you would only be required to pay sales taxes on orders received when you meet the economic nexus thresholds, and thereafter. I am not aware of merchants having to pay "back taxes" on orders they received prior to them meeting the tax thresholds determined by the state. That said, I would recommend speaking to a tax professional and referring to the state tax authorities and any information they may have on this to confidently determine what your obligations would be in this scenario.

Kind regards,

Victor | Shopify Social Care

Victor | Social Care @ Shopify 
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