Are Alabama home businesses facing sales tax issues with online platforms?

extremebling
Visitor
2 0 1

Is there anyone else with a home based business in Alabama that's been having issues with Shopify collecting sales taxes correctly? We are a destination based state, which means that sales taxes are collected based on the customer's shipping address. We do not have a physical store location; again we are home based and only sell online. However, shopify is not charging local (city and county) sales taxes on orders that are being shipped within my state, but not within my local city or county. Basically, I'm located in the city of Calera, county Shelby (homebased) and any orders that are shipped outside of our city and county will not collect the local sales taxes. I'm loosing sooooo much money and this isn't fair. No one has been able to provide a solution. I guess I'm expected to keep taking orders that don't collect sales taxes and then pay the amounts out of my pocket to my local revenue departments. I'm sick on the stomach at this point and may have to shut my online store down and switch to another platform.

Replies 3 (3)

RickKlem
Tourist
7 0 1

Hello, I know this is an old post, but I just joined, and I am having a similar issue. I also live in Alabama, and we have a home-based online store. My issue is Shopify should only collect county taxes for any customer that lives in my county (Russell) and state taxes for any customer that ships to an Alabama address. But they are charging city and county taxes for any and all counties and cities in Alabama. Which means that I have to register with each county and city and then pay them at the end of each month. 

 

I contacted Shopify several times and they said for me to contact my tax advisor and the state of Alabama? I have no clue why I would do that. I know what the law is. Its shopify that is collecting taxes for cities and counties that they shouldn't be. 

 

Did you get it resolved?

 

TIA

nursingqueen
Visitor
2 0 0

I’m in Alabama and same issue!!! Did you find a solution? Quinn@nursingqueen.com 

Jan_Shoffit
Visitor
1 0 0

Were you able to get this issue resolved?  I've been a Shopify online and POS user for 4 years and 2024 sales tax calculations have been changed.  Was wondering if I need to start manual sales tax option.