Do I Really Need a New Jersey Tax ID to Sell on Shopify?

Accounting & Taxes
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1

Hi everyone,

I’m setting up a Shopify store in New Jersey and want to make sure I handle sales tax correctly before launching.

I already have:

  • A registered business
  • An EIN
  • A Shopify store in setup

Shopify is asking for a New Jersey Sales Tax ID / Taxpayer ID before enabling tax collection.

For those who sell through Shopify in NJ:

  • Do I legally need an NJ Tax ID before I start selling?
  • What are the main benefits of registering for one?
  • Does having an NJ Tax ID create additional filing or reporting obligations even if sales are low?
  • After forming the business and getting an EIN, what are the exact next steps to register for NJ sales tax?
  • How long does it usually take to receive the NJ Tax ID and Certificate of Authority?

I’d especially appreciate answers from NJ Shopify merchants who have already gone through this process.

Thanks!

2

The address on your business license, the address for your EIN, the address you claim as your business… is in New Jersey. Right?

So your government collects sales tax, like most states, based on something called Nexus. Nexus is a set of criteria and thresholds. Physical presence creates nexus in most states, so Shopify says it’s needed. Nexus, baby. Gotta learn nexus.

3

Thank you @Maximus3 . I’m planning to sell only online. Could you please give me more information about Nexus? How can I initiate this process (Nexus)?

4

Building on the nexus point above: since the business itself is registered in New Jersey, physical nexus applies from day one, so registering through NJ-REG before launch is the safe order of operations - the EIN alone doesn’t cover sales tax.

Registration is free and the Certificate of Authority generally arrives within a couple of weeks of completing the online registration.

One thing to plan for: once registered, NJ expects returns on the assigned schedule even for periods with zero sales, so it helps to put the filing dates on a calendar from the start.

Also keep in mind Shopify only calculates and collects tax at checkout - remitting and filing stays with the merchant.

5

You don’t need to initiate anything. You’ve already done it. Online-only really doesn’t matter. If you have a business in the state, nexus is already there. Even if you don’t have customers in the state, you still need to register, and you still need to file your business taxes. Your state needs to know how much you made in the state, even if it’s 0.

Also, if you ever do any live test orders to yourself, you will pay sales tax, and you need to record those sales for your filing. I highly recommend doing this. You need to know exactly how it works, any issues at checkout, and to review actual confirmation emails. So you’d need NJ Tax remission anyway.

6

If your business is registered in NJ you have " Physical nexus" in NJ for Sales Tax & you must register and start collecting Sales Tax in NJ.

7

Thanks for your help. I’ve registered, and I have the tax ID. After that, will the state tax be applied to the product automatically at checkout?

8

You have to make sure you activate NJ under Settings - Taxes & Regions for Shopify, ensure the collect sales tax box is checked on each item, and category selected so the right tax rate is assessed. Then any orders either picked up or delivering in NJ will have NJ tax applied. You must then file the return based on the schedule the state assigned. You could also look into Shopify Tax filing for you. Sales shipping outside of NJ should not have tax assessed.