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Do I Need a Tax ID to Sell on Shopify?

Last updated on October 1, 2022 @ 2:48 pm

As an ecommerce business owner, you’re responsible for collecting and remitting taxes on all sales. Depending on your business type and location, you may need to obtain a tax ID. In this article, we’ll discuss whether or not you need a tax ID to sell on Shopify.

What is a Tax ID?

A tax ID is an identification number assigned by the government to businesses for tax purposes. In the United States, this number is also known as an Employer Identification Number (EIN).

Do I Need a Tax ID to Sell on Shopify?

Generally speaking, you will only need a tax ID if you are selling physical goods to customers in the United States.

If you are selling digital goods, such as ebooks or software, you will not need a tax ID.

How Do I Obtain a Tax ID?

If you determine that you do need a tax ID, you can apply for one online through the IRS website. The process is relatively simple and should only take a few minutes to complete.

Conclusion

In most cases, you will not need a tax ID to sell on Shopify. However, if you are selling physical goods to customers in the United States, you will need to obtain a tax ID from the IRS.

Apply for an Employer Identification Number (EIN) online.

PRO TIP: If you are thinking about selling on Shopify, you may be wondering if you need a tax ID. The answer is maybe. Depending on the products you are selling and the state you are selling in, you may need a tax ID. If you are selling taxable items, you will need to apply for a tax ID from your state.
Dale Leydon

Dale Leydon

Sysadmin turned Javascript developer. Owner of 20+ apps graveyard, and a couple of successful ones.