PLEASE HELP!! I just launched a boutique and sell online out of Texas. I sold something out of a different state and it didn’t charge taxes for that state, do i need to get a tax ID for every state? Or is there an easier way to go about this. I never know where my sales are going to potentially come from so I need to add all states in the U.S.
Welcome to the Shopify Community and congratulations on your launch! Sorry to hear you've been having issues collecting taxes. Happy to provide some guidance. I will note: we're not able to provide any legal tax advice, we always recommend consulting a local tax authority or tax professional to ensure you're charging the correct tax rates, and to ensure you file and remit your taxes properly.
That being said, happy to provide some information here for you. Have you read through our US Taxes help documents? This help document is a great place to start figuring out whether or not you need to charge tax in different states in the US. In general, the requirement to charge sales tax in different states is based on nexus. Nexus is a connection between your business and a state, whether physical or economic. If you have nexus in a particular state, then you probably need to charge sales taxes there. I'd recommend reading through the document I linked in full.
From there, once you've determined which states you need to charge tax in, you'll need to register with each state. Each state has different contact information, we have compiled a table with this information linked here.
Once you've registered in the states you're required to, you can set up the regions in which you're registered in your Shopify Admin. Note, you can start collecting before receiving your Tax ID in each state, this is mentioned in the help document steps.
I'll also pass on this helpful US Taxes FAQ page. Let me know if you have any questions!
Yes, you need to get a tax ID for each state; otherwise, if it turns out that you received the money but did not give part of it to taxes, then you will have a huge fine or even something worse.
Yes, you need to get a tax ID for each state. Otherwise, if it turns out that you received the money but did not pay part of it as taxes, you will have to pay a huge fine, or something even worse might happen. If you need a detailed guide on setting up all sales in Spotify, contact support about it - they've always answered all my questions. However, if you are interested in learning more about tax-related things, I suggest you visit https://www.greedyrates.ca/. Various articles about innovations related to taxes, loans, and so on are often published here.