Ive been open for about 2 years now.. and i believe im losing money with tax collection or maybe i dont understand how it works?
My store is registered in CT where we pay CT taxes monthly
My store is open to all of the US
I have my tax settings set to CT and collecting with the appropriate ID however when a customer checks out from another state its collecting no tax...
After a sale is made, it is imported to my quickbooks automatically and i pay my taxes using the tax tab that says taxable income..
Shouldnt i be collecting tax on all of my sales regardless of the state because i have to report those sales on my CT tax filing? If thats the case then ive been paying tax out of pocket technically for all these sales the entire time... can anyone help with this?
Kritesh here from Better Reports support team.
I believe our app Better Reports may be able to help. While we work on read-only permissions and can only report on what tax has actually been collected, we can report that tax by the tax name and tax amount.
We can also show the total net sales and total taxes for all tax combinations for the order by their billing and shipping state.This can help you verify the tax collection for each billing/shipping state.
These reports can also be exported directly to Excel, csv or pdf.
I encourage you to install Better Reports and start your free 14-day trial, and I'll be happy to set this up for you.
In addition to building custom reports to meet your specific needs, you'll also get access to 60+ built-in reports that cover many common use cases for merchants and our reports can be scheduled to send to your email or Google Drive at set frequencies.
Let me know how you go and feel free to reach out if you have any further questions.
I am having the exact same issue. This seems like a problem that Shopify needs to rectify sooner than later. I've been dealing with it since November, and have paid many taxes out of pocket.
Typically an online seller will be responsible for sales tax when they reach a certain number of transactions and/or amount of sales in state. Keep track of this information as each state's threshold varies. If you sell on a platform that is a marketplace facilitator (such as Amazon FBA) then they take care of the sales tax responsibilities for you.