Sale tax in California

[sunwear255]

Hello,

I live in California.

I just start selling products online. I do not have physical presence on any state.

On the product page I already uncheck " charge tax on this product", but the system automatically add California tax for california customers.

As I just started business, I do not expect to have high volume sale. It's no good idea to collect the tax at this time.

Is it legal to delete California Tax 3.25% from shopify admin. Other words, Is it ok I I do not collect the tax for califorina customer.

Thanks

[Elias]

Hello, @sunwear255.

Elias here with Shopify Support. Thank you for reaching out.

I recommend speaking with a local tax expert to confirm because remote sellers may still be required to collect taxes. Whether you collect taxes is determined by the State, each State in the US has varying laws for collecting sales taxes so you aren’t likely to be omitting taxes because you are starting out. We have a guide here to help you with setting up taxes in the US and we also have one for economic nexus tax. ‘The Seller’s Guide to eCommerce Sales Tax’ by TaxJar is a great resource for  further insight for sales tax in the US.

If you’ve confirmed that you can omit collecting taxes, you can set up your tax rates manually. This will allow you to adjust the tax rates to 0%. 

If you have any further questions regarding setting up taxes on your store, we can only provide technical support and not professional or legal advice. Feel free to reply to this thread and I’d be happy to help.

[AlanaBryantCPA]

Since you are located in California,  here is another article that you should look at:

https://www.avalara.com/us/en/learn/whitepapers/sales-tax-implications-of-drop-shipping.html

Alana