Financing, tax rates, and accounting
Our companies are preparing to implement measures to account for the Wayfair decision (https://taxfoundation.org/supreme-court-decides-wayfair-online-sales-tax-case/) in terms of how it impacts our collection of sales taxes for out of state shipments.
The primary focus and impact involves our e-commerce. I assume that Shopify will implement an updated sales tax mechanism to collect sales taxes under the new guidelines? Can somone at Shopify please let me know of the implementation timeline and whatnot?
Hi Greg,
Nick here from Shopify.
I looked into this for you. One thing to note is that Shopify cannot advise you on where and how you should be charging taxes but we can provide the steps on how to set up your taxes for this. Laws are in place in a lot of states already and store owners will need to add these states by adding a physical presence in your Shopify stores. As of right now, there is a help document with as much information available as possible on this for Shopify store owners which you can find here. Should any more information become available I will be sure to let you know.
All the best, Nick
To learn more visit the Shopify Help Center or the Community Blog.
Thanks for the info. I found another thread about this same topic. I should've searched before posting 🙂
I am looking to potentially implement the Avalara TrustFile plug-in, but without the Shopify Plus subscription the front-end Avalara setting isn't available under my Settings --> Taxes area. So we are taking a step back and looking at typical shipment amounts to each state before pulling the trigger.
No worries at all Greg, there is a lot of information out there.
Yes, you are correct also, If you are a Shopify Plus store owner, you can use Avalara to set a tax jurisdiction for the states that they have economic nexus in.
As soon as there is any more information at all, we'll do our best to keep everyone informed.
Cheers, Nick
To learn more visit the Shopify Help Center or the Community Blog.
The software TaxJar seems to have everything figured out for those who aren't on the elite "Shopify Plus" plan ...
Hi Greg_Kujawa,
Have you consider to use a compatible software solution to automate the sales tax mess? Besides issuing invoices with sales tax included and creating tax reports so you can easily fill your tax return in no time, some of them such as Quaderno will notify you when you have surpass the threshold of an economic nexus.
Hope that helps!
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