I got this notice today, thoughts?

Sales tax may apply to your Shopify bills starting April 1, 2023

Shopify is required to charge sales tax in Virginia. Since your business address is in Virginia, applicable sales tax may be added to your Shopify bills starting on April 1, 2023.

No action is required from you.

It’s called sales tax nexus. Each state has its own criteria for whether or not you’re required to collect sales tax and then pay it to the state. One of those criteria is having a physical presence. So if your business is located in Virginia, Shopify will charge your customers there sales tax, and you’re required to pay that tax to Virginia either monthly, quarterly, or yearly.

Other criteria for having nexus in a state would be hiring a contractor in that state, having a warehouse there, or doing enough transactions/revenue in that state. Shopify can tell you what states you might have nexus in based on transactions/sales (go to Settings > Taxes and Duties > United States). From there you can select the level of sales tax management you want Shopify to do.

If I were you I’d find a sales tax person or use an app like Tax Jar. Tax Jar has a monthly fee plus $30 per filing. I believe Tax Jar can also tell you if you have nexus in each state.

Let me know if I didn’t answer your question.