I know Shopify lets me add a state-provided tax ID for states where I am collecting taxes (whether by physical or economic nexus). I also know it’s optional.
That begs the question: What benefits do I get from adding my tax ID?
For example: Is there a future plan for Shopify to automate tax filing by generating documents or something?
At present, I’m not seeing any real value in adding the tax ID. After all, the most important thing is that we’re collecting those taxes - and doing that does not require entering a tax ID.
I ask because I’m a developer who works with lots of merchants. Obtaining their state-provided tax ID is far more involved than merely clicking “Add this Nexus location”. So I tend to get “why do I need this?” sort of questions about adding the tax ID. At present, I don’t have a good answer for them.