As an online business owner, you’re responsible for collecting and remitting sales tax on behalf of your customers. Depending on the products or services you sell, and the states in which you do business, this can be a complex process.
Fortunately, Shopify makes it easy to set up sales tax for your store. In this article, we’ll show you how to set up sales tax on Shopify.
When you set up your Shopify store, you’ll be prompted to enter your business address. This is the address that will be used to determine which taxes need to be collected from your customers. Based on your business address, Shopify will automatically enable the appropriate taxes for your region.
If you need to collect taxes in multiple states, or if you want to customize your tax settings, you can do so from the Taxes page in your Shopify admin. To get there, go to Settings > Taxes.
On the Taxes page, you can enable or disable specific taxes, and customize the tax rates that are applied to your products. You can also create product-specific tax exemptions, and add manual tax rates for shipping and handling charges.
Once you’ve configured your taxes, Shopify will automatically calculate and collect the appropriate taxes from your customers at checkout. And when it’s time to file your taxes, Shopify will generate a report that includes all of the relevant information.
Setting up sales tax on Shopify is simple and straightforward. By following the steps above, you can ensure that you’re compliant with tax laws in your region, and that your customers are being charged the correct amount of tax at checkout.
