Shopify Tax Alternatives to Sales Tax Collection

[shophomework]

I'm wondering if there's an alternative to Shopify Tax for the collection of sales tax. I find Shopify Tax's 0.35% fee per transaction to be incredibly high. If you have $40K in sales you're paying an extra $140 in Shopify Tax fees just to comply with sales tax collection. Unfortunately Shopify's Basic Tax, which is free, does not calculate sales tax correctly for our brick-and-mortar because our retail location zipcode is used both inside the city (which has it's own sales tax rate) and outside the city (which has a different rate). It's defaulted to the incorrect zipcode rate for our address. I know there are a ton of 3rd party apps for filing sales tax, but I'm wondering if there are 3rd party apps for collecting sales tax. Or are we all put in a corner by Shopify to pay extra fees to collect sales tax correctly?

[SealSubs-Roan]

The 0.35% Shopify Tax cost can quickly mount up for high-volume retailers. The only alternatives for alternative sales tax collection (not simply filing) are limited because Shopify does not permit third-party apps to completely override or write into their native tax system. However, if you're at the retail level, which is likely complex, you might want to look into AvaTax by Avalara, which is meant to function well with Shopify and provide you far more accurate tax calculations. Although it costs money, it may also give you more power than Shopify defaults.

[Taxiom_com]

Avalara/Vertex are some alternatives. Tax automation software is definitely necessary the larger your business becomes and the more states you do business in. It's not that you couldn't do this manually, but in my experience, its usually cheaper & better for your sanity to use technology when it comes to dealing with sales tax.