I've had my store up and running for a little while now and ive had a decent amount of traffic from other countries such as Australia and Canada. I added a couple of shipping zones to my store and instantly i ended up getting a few international orders.
What i am wondering is what is my job to take care of taxes on these products? Ive read around and it all seems to be a bit confusing for me. My main questions pretty much are..
1. On the "Taxes" page do i need to change the "country tax rate" numbers? if so where do i find the rates
2. Do i have to report quarterly sales also?
Im pretty new and confused so any help is appreciated!
Taxation is definitely a topic that causes stress to many, you're not alone! Please take the following advice with this disclaimer: I am not an accountant. I've just been around enough Shopify stores to know my way through the sales tax minefield :).
Since you're based in California, you won't collect taxes on out-of-state orders. This means you won't have to change the country tax rate numbers. For filing quarterly sales tax returns, and for a deeper explanation of why you don't need to charge sales taxes to international buyers, please take a look at this amazing page about the taxation rules for online businesses based in California by TaxJar:
I know it's a bit tricky knowing where to get information from. What could also be a good resource for you is your local chamber of commerce. Oftentimes, they will have free consultations with lawyers or accountants looking to drum up business by offering a free session. You could get some good advice from them as well. I hope I was of some help!