Sales tax

[Pavlovic1144]

Hello guys! I’m new to Shopify and I have a couple questions about sales tax. I am a print on demand store and use Printify as my supplier. Do I need to charge sales tax? 

[KP_Enterprises]

You should contact your state tax division with that question.

[hicklandart]

I am helping a friend with his Paintings, selling Gliclee's, and from my research, since everything is based in las vegas, the printing, the inventory and shipping, Las Vegas is our Nexus as they call it.

You do have to collect taxes at the rate of the buyer's location, my buyer was in Reston Virginia

that is not terribly interesting, but selling in the US, I setup Shopify Tax, assuming they would collect sales tax and pay it for me.

I just found out that I would have to create 50 Tax ID's in 50 states and file in 50 states every month or quarter.... in order to collect for every sale. 

If you don't add a state, it won't collect for sales in that state.

All it seems to do is charge the correct rate and provide reports of what you owe to each state.

[KP_Enterprises]

One thing that I would advise anyone who is faced with collecting sales tax, is to search on Streamlined Sales Tax. There is a service that offers easy registration in some states and helps with making the sales tax determination simpler.

Shopify may collect sales tax for you if you have the correct triggers set up in their system. However, they do not file and pay for you at this point. The question that the OP has is about whether or not he needs to collect sales tax on his services. Some services are taxable and some are not. Items sold during that service may also be taxable even if the service itself is not. It's best to confirm with the state in which you are selling to confirm if the transaction requires sales tax. The OP is probably required to collect for his home state but may not be required in other states. Whether he collects on his local rate or destination rate must also be determined. That is determined by his states laws for in state sales and nexus in other states. There is physical nexus to consider AND economic nexus. If the sales volume or quantity of sales exceeds the states requirements, then he is expected to collect sales tax. And as you point out, that can mean registering and filing in a lot of states. There are a few that do not collect sales tax. There are some states where you are required to register not only for the state but for districts inside of the state. They can be difficult to be in compliance with. Collecting tax is also based on origin or destination and that can vary from state to state and county to county and city to city or even zip code to zip code. Then, in some states, shipping is also taxable. It's just a night mare.