We use Avalara to file sales tax for sales from Shopify. We have TikTok connected to Shopify for fulfillment. TikTok collects and remits sales tax on our behalf. However, in Shopify these transaction come through with sales tax “filed_by_channel” category “Unspecified” and therefore are being fed into into Avalara as tax liability. Any way to fix this?
Hi @SavorUS ,
I know this thread is old but did you happen to have a workaround for this issue?
Thank you!
Just bumping this thread as I have the same issue currently. Any ideas out there?
Hey,
I’d love to look at solving this problem. Would you be willing to show me what it looks like on your end in your shop so I can start looking at it?
I run a sales tax filing service specifically for Shopify, and this is a recurring problem. I understand the issue, but I want to see if someone is willing to let me look around with them so I can compare to the TikTok API and see if I could figure out a solution for sales tax purposes.
Hey,
I’d love to look at solving this problem. Would you be willing to show me what it looks like on your end in your shop so I can start looking at it?
I run a sales tax filing service specifically for Shopify, and this is a recurring problem. I understand the issue, but I want to see if someone is willing to let me look around with them so I can compare to the TikTok API and see if I could figure out a solution for sales tax purposes.
I know this thread is a bit old, but I’m jumping in in case it’s still helpful.
This happens because TikTok collects/remits the tax, but Shopify doesn’t consistently flag those orders as marketplace-collected. Avalara then assumes the tax is yours.
The real fix is to explicitly mark TikTok Shop orders as marketplace-collected before they hit Avalara. Shopify’s current TikTok integration is spotty here, which is why this keeps showing up as a liability.
Using Avalara, you’ll need a preprocessing step (tags, order routing, or exclusions) so those orders don’t get treated as owed tax.