I read about shopify now collects taxes for both merchants and buyers. Wondering how that works for buyers? What’s the easiest way to set it up for a store shipping internationally?
Found this discussion and can use some official answers: Reddit - The heart of the internet
Hey there!
Tax collection must be set up by the merchant and can be done in your taxes and duties settings per country. The need to collect and remit taxes is based on a variety of factors which you would need to review before setting up tax collection. If you use Shopify Tax as your tax service, you will be notified if you reach liability in a given state or region depending on where you are selling.
For international shipping, Shopify also offers the ability to estimate and collect duties and import taxes at checkout through Shopify Markets, so your international buyers see the full cost upfront.
In the Reddit post you linked, this refers to tax collection on the Shop Channel. The Shop channel automatically collects, remits, and files taxes for all orders shipping to or within the United States as of Jan 1 2025. For buyers that means it’s automatically calculated and added to the total when they checkout through the Shop app.
For sales through other channels, such as your online store, at checkout the tax will be calculated and charged for buyers based on your setup (https://help.shopify.com/en/manual/taxes)
Here are a couple of resources you can review for additional guidance:
Let us know if that doesn’t answer your question!