Hello. I just opened a new store on shopify. I am having problems with the sales tax. I sale in cali and was wondering do I need to register to start to collecting sales tax. Since i am new to this and don’t think i will be make 55k or above do I need to collect sales tax at all. I’m a stationery shop and don’t think my sales will be that high just yet. any help will be grateful.
From the Shopify admin, go to Settings > Taxes and duties In the Countries/regions section, click your country or region.In the Sales tax section, click Collect sales tax.In Tax number, enter your tax number. …Click Collect tax.
Hi, @Tanzania .
As a business owner, you may need to charge taxes on your store’s sales and remit them to your local government. This will all depend on several different factors however, such as location and individual business circumstances. Because of this, and due to the fact that tax laws and regulations can change often, you’ll need to consult with your local tax authority. They can help you verify whether or not your business will need to charge sales taxes, as well as ensure that you’re filing and remitting your taxes correctly.
Although we aren’t tax experts and aren’t able to provide tax advice, we do have some guides that you can read to get you started and help answer some of your preliminary tax questions. Feel free to take a closer look at them below:
- Guide to US taxes
- US taxes reference
- How to charge sales taxes in the US
- Guide to taxes for independent contractors
While Shopify doesn’t remit or file your taxes for you, we’ve recently launched a new feature called Shopify Tax, to help US merchants improve the accuracy of their tax calculations for local customers. If you’re a new merchant, then this feature will have already been added onto your store automatically, so I recommend going through our help guide here to familiarise yourself with the functionalities that Shopify Tax currently offers.
Have you launched your Shopify store yet, or are you still in the process of doing so? Let me know if there’s anything you’re currently working on that you need help with!
Hi @Tanzania , the Sidr Tax app is built to solve exactly that. You can use our app to see the total number of orders and gross sales within any time period. Which is what you need to determine whether you have hit the “Nexus Status”. When you are approaching your “Nexus Status”, you will need to register with the state to start collecting tax.
Hi Kim,
I am confused about the sales tax. I was chatting with support to find out what I am charging for sales tax. He advised me that it’s automatically figured by shopify and you take care of everything. I then said so you guys take care of reporting it to the proper states? And he said yes. After reading this chat it appears that he was incorrect. So can you advise me on if I am to report the sales tax collected on sales?