I am using the Shopify Tax option to collect taxes. I have an online store only and no brick and mortar. My state requires me to collect state tax from anyone that orders from me that lives in my state. And for Local taxes , I only need to collect taxes from customers that live in the same county th…

Anyone have any help? I need to fix this today or I will need to shutdown my site until resolved.

Are you sure you’re correctly looking at this? If you have nexus in a state, collecting and remitting down to the local level applies to the entire state.

Thanks for the reply. According to my tax advisor and a rep at Alabama Revenue dept, I must collect state tax from anyone that resides in Alabama and county tax from anyone that resides in my country only. I am not to collect tax for anyone that luves in the city near me because I do not live inside…

Is there anyone from Alabama that uses Shopify for their online store? I would like to know how they fixed theirs.

What you are describing doesn’t match with my understanding. As I understand it, if anyone buys at your location, you collect state, county, and city tax for your county. If you ship to someone outside of your county, then you typically collect state AND local taxes related to that destination city/…

Do you have a location in Alabama? Alabama revenue law states that if your business is located in Alabama then you must collect county and citi taxes only for the county that you are selling from. If I had mulitiple locations in different counties then I would have to collect taxes from those two co…

I believe that what you’ve said here is correct. If you sell to anyone in the state and they pick up in your physical location, then you collect state and local tax based on your location. If you ship to another location however, this may be different. Your state may require that you collect the loc…

Did you find a solution? I am having this same issue now.

So you just went into Settings > Taxes and Duties > scrolled down to “United States”, scrolled down to “Regions you’re collecting in”, Select “Alabama” and edited the “Sales Tax Information” with your LOCAL tax ID instead of your STATE tax ID? That’s all you have to do? Is Shopify still collecting t…

How can I adjust local tax settings on Shopify for my online store?

Accounting & Taxes

RickKlem February 5, 2024, 10:13pm 10

Yes I did. Originally I had entered my Alabama state tax collect ID number on Shopify. I had a different one for my local county so I went back and entered it instead and it appears to have corrected my issue.

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How can I adjust local tax settings on Shopify for my online store?

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