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Hi I am just reaching out in hopes to get some answers. First and foremost when I send invoices to my customers to pay they all get invalid address. I don’t know how to fix this. Can anyone help?
Also I live in New York so the sales tax works for my customers in NY but not in any other state. Did I not set something up correctly or is this normal?
Lastly when an item sells out in my store, and I don’t plan on restocking that item I currently just have it as archived, but should I just delete these items?
Please help!
You only need to collect sales tax if you’re shipping to a state where you have nexus. Nexus is essentially when your business presence in a state is significant enough that you’re required to collect sales tax.
There are two ways you can gain nexus:
Physical Nexus: If you have a physical presence in a state (e.g., an office, warehouse, or employees), you’ll need to register to collect sales tax in that state and start collecting tax on shipments to that state. Since you mentioned you’re located in NY, your store is correctly recognizing that you need to collect sales tax there. If you go to Settings -> Taxes and Duties -> United States and scroll down, you’ll likely see that NY is turned on for sales tax calculations. Based on what you’ve shared, this would be set up correctly.
Economic Nexus: You can also gain nexus if you sell enough products into a state to surpass its economic nexus thresholds. Generally, these thresholds are a minimum of 100 individual transactions or $100,000 in sales into a state over a 12-month period. Once you exceed these thresholds, you’ll likely need to register for a sales tax license in that state and begin collecting tax on sales there.
Shopify makes it easier to track this under Settings -> Taxes and Duties -> United States -> Review Insights. You’ll also get a notification from Shopify when you hit 80% of a threshold and again when you reach 100%.
Once you’ve crossed a threshold, you’ll need to register with that state, obtain a sales tax license, turn on tax calculations for that state in Shopify, and remit the tax to the state when required.
So it sounds to me like you have it set up correctly. Happy to help take a closer look if you want.
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