Sales Tax Question

ZPlates
Not applicable
3 0 0

What do small sellers do about sales tax? Let's say your annual sales on Shopify are below $10,000 a year. Do you just charge and remit sales tax locally for where your business is located and ships from?

Or is there a magical app that automatically remits the sales tax based on the buyer's location?

I really like how eBay, Amazon, and Etsy do this automatically for you, I wish Shopify was the same.

Reply 1 (1)
eCommAccountant
Explorer
74 1 14

eBay, Amazon and Etsy only collect on your behalf for 40+ states, leaving the seller to take care of the rest themselves.

No app handles sales tax processing.

Where your business is physically located gives you sales tax nexus, you'll need to obtain a sales tax license then collect/remit for your local area.

Selling outside your local area, once you reach each states sales tax threshold, then you'll need a sales tax license, then start collecting.

Also Kansas has no threshold, you sell $1 to a Kansas address you collect at least .07 in sales tax. But you MUST obtain a sales tax license first, collecting sales tax without a license in hand first, is illegal in all states.

Deb Fletcher - eCommerce Accountant
dual MBA's in Accounting & CIS
Accounting & Bookkeeping Services, LLC
https://www.yourremoteaccountant.com