As an ecommerce business owner, you may be wondering if you need a sales tax permit to sell on Shopify. The answer is: it depends.
If you are selling physical goods, you will likely need a sales tax permit in order to collect and remit sales tax to the appropriate state and local tax authorities. However, if you are selling digital goods, you may not need a sales tax permit, depending on the laws in your state.
In general, a sales tax permit is required in order to collect and remit sales tax on the sale of physical goods. Sales tax is a transaction tax that is imposed by the state and local governments on the sale of goods and services.
The seller is responsible for collecting the sales tax from the buyer and remitting it to the appropriate tax authorities. In order to obtain a sales tax permit, businesses must apply for one from the state in which they are located.
However, some states exempt digital goods from sales tax, so if you are selling digital goods, you may not need a sales tax permit. Each state has its own laws regarding sales tax, so it’s important to check with your state’s Department of Revenue to find out if you need a permit.
You can also use Shopify’s built-in Avalara AvaTax tool to help you determine whether or not you need to collect sales tax on your orders.
In conclusion, whether or not you need a sales tax permit to sell on Shopify depends on the type of goods you are selling and the laws in your state. If you are selling physical goods, you will likely need a permit in order to collect and remit sales tax.
However, if you are selling digital goods, you may not need a permit, depending on the laws in your state. Be sure to check with your state’s Department of Revenue to find out if you need a permit before starting to sell on Shopify.
