Sales Tax: Selling thru Shop App

Accounting & Taxes
1

I just made my first sale through the Shop App. The order is going to a state that I don’t have economic Nexus in. I just want to make sure I understand how Shopify handles the marketplace facilitator sales tax. They will collect and remit the sales tax for this order, and therefore I don’t need to do anything with the sales tax on my end, correct? T

I sell on a few other marketplaces who are also marketplace facilitators and collect and remit sales tax on my behalf (Ebay, Etsy, etc). Sales tax is essentially handled the same way thru the Shop App, correct?

2

Hi @ecom1234

Yes, you’re correct! If that order is made in certain U.S. states, Shopify, as a marketplace facilitator, will collect and remit sales tax on your behalf through the Shop App. There is no further action you need to take on your end for tax, as long as the order is tax-qualified.

3

Thank you!