Financing, tax rates, and accounting
I'm wondering whether or not if I need to collect any type of taxes for my products. I live in Texas and I just started my dropshipping business and I'll be shipping roll-up pianos from US and China to US and Canada. I need to know what taxes to collect soon before I start selling. Thank you
Hi there, @PianoPraxis!
Thank you for your post. I'm unable to provide tax advice, but Shopify has some great resources to help you learn more about taxes on your store. We do recommend that you contact a local tax professional to discuss your business's specific tax obligations.
I first recommend checking out our US taxes help document. It goes over nexus (a connection between your store and a US state, which determines whether you potentially have tax liability there), how taxes work for different types of businesses, and how to set up your taxes in Shopify. Here is some information for you from the Dropshipping section of the help document:
If your store uses dropshipping to provide products to your customers, then essentially you are buying a product from another vendor, and then your customers buy that product from you. Whether you charge tax depends on the location of your customer and where you and your dropshipping vendor have nexus.
If you are also planning to sell in Canada, you can review our help document on Canadian taxes.
If you're looking for help to determine your tax obligations, an option you have is hiring a Shopify Expert that specializes in US sales tax! Shopify experts are highly-skilled designers, developers, and consultants who build successful brands, businesses, and Shopify stores. Each expert is reviewed before joining the marketplace, so you know you can trust them to get the job done.
Please let me know if you have any other questions!
Greta | Shopify
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