Shopify & Sales Tax for remote Sellers - Add this feature PLEASE!!!!

New Member
1 0 3

Hi Shopify and the community.

More and more states in the US are passing legislations where remote sellers that have an economic presence in a state have to collect and remit the sales tax.
The problem is that Shopify has not adapted yet to these changements in regulations and is not able to provide a good help.
Let's take the state or Ohio. In OH, you are considered to have an economic presence when you do at least $100K of revenue there (or maybe $200K, not sure), OR 200 orders (I'm sure for this number).  200 is not a big number...
The problem is that OH Sales tax is an origin based taxation. How to do "origin based" when you're out of OH? Well, easy, you charge on destination basis (OH legislators thought about this).
BUT the problem is that you can't change origin to destination for OH on Shopify. An alternate solution would be to add tens/hundreds of zipcode to cover the destination (as for Virginia and probably other states)...

The fix is quite easy though...
Developers should create a Physical Sales tax rule and an Economic Sales tax Rule.
When you create your sales tax, you say if you need a physical or an economic sales tax. Then the good taxation system is implemented.
It doesn't change a thing for like 75% of the states. But for those that it changes (OH, VA, CA, ...) it would greatly help.

So please Shopify, ask your guys to work a day on this and help hundreds (thousands) of merchants that need to integrate an economic nexus.

Reply 1 (1)
22 0 12

Yes, @Alex-75 , this! I agree. This seems so simple, and you have so clearly defined what the problem is, and all that is needed to fix it. I saw rumors on another thread that I had started back in fall of 2019 where it sounded like maybe Shopify had resolved this, but wasn't pushing the new sales tax tool out to all stores. With July 1 coming up soon, I thought if this is really a thing, it would be nice to start off Q3 with the sales tax actually set up correctly for these origin-based states where I only have economic nexus, not physical nexus. So I contacted Shopify about it today, and the guy I'm communicating with seems to have no idea about this new tax tool. So maybe whoever talked about it on the other thread was wrong, but it seems unlikely that he would have just made it up. I'm dumbfounded as to how this hasn't been solved yet.