Taxes and Duties

[gant7]

I have not started to collect taxes, but on my setting for Taxes and Duties, I selected Shopify Tax. I need assistance in regards to collecting taxes on other states, i am currently in California. What do I need to do to make sure I am correctly collecting taxes from the customer?

[Kimi]

Hi, @gant7.

You may need to charge taxes on your store's sales and remit them to your local government, but this all depends on several different factors, such as location and individual business circumstances. Because of this, and due to the fact that tax laws and regulations can change often, you'll need to consult with your local tax authority. They can help you verify whether or not your business will need to charge sales taxes, as well as ensure that you're filing and remitting your taxes correctly.

If you've confirmed with your tax authorities that your business is required to collect sales taxes, I recommend going through our guides below, to help you with setting up your taxes within the Shopify admin:

• Guide to US taxes
• US taxes reference
• How to charge sales taxes in the US
• Guide to taxes for independent contractors

In regards to the Shopify Tax feature you selected, while Shopify doesn't remit or file your taxes for you, this feature will help US merchants improve the accuracy of their tax calculations for local customers. If you're a new merchant, this feature will have already been added onto your store automatically, so I recommend going through our help guide here to familiarize yourself with the functionalities that Shopify Tax currently offers.

Have you launched your Shopify store, or are you still in the process of doing so?