Do I need to register for sales tax before making any sales?

[veron2233]

Hello everyone it says for my home address to register to collect sales tax but havent had no sales yet, in other words, Would i need to register before i get sales or later? please and Thank you everyone.

[BreezyFile]

Hey!  Generally, you are supposed to register with your nexus states before making any sales. So as it sounds like you are just starting, you likely only have nexus in your home state.

If you wait to register until after you have sales, you'll have to pay those taxes that you should have collected, out-of-pocket.  So usually as long as you settle up with the state, they will be happy.

So the proper order would be to 1) register, 2) turn on tax collection in Shopify 3) file your first filing on-time based on when the state says your deadline is.

Hope that helps!

[Kristina1907]

The EIN registration is needed for sure when you start selling in the USA. And ST registration depends on the nexus created. The Lovat team helped me with the information, registration, ST reporting https://vatcompliance.co/tax-academy/sales-tax-economic-nexus-thresholds-tracking/

I can confidently recommend them.