Hey everyone! I need some help. My store is linked to a website called “Printful”. Basically, I design clothing using their products and sell through them. When I make a sale they pay me around 20% of the profits. Do I still need to register for taxes through Shopify? Because I would think if I’m only getting part of the profit from Printful, Printiful should be already taking out taxes off their products themselves right?
Hi, @CdesignsGear
These are great questions! Thanks for posting.
Firstly, I do want to clarify that you do not register taxes in Shopify. Shopify will not remit taxes on your behalf. However, we will charge your customer’s sales tax if you require this.
While we aren’t tax professionals, and it’s important to speak to a local professional, we can provide a bit of clarification. For example, you won’t pay taxes on your total sales. Instead, you pay taxes on your income. This is essentially your total sales less any costs you incur to do business. This would include the cost of the Print on Demand products you dropship.
I was able to find a great resource you can check out regarding filing taxes when dropshipping. Please note, this will differ depending on your country. I recommend you review this information and then speak to a local tax professional.