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Do You Have to Collect Taxes on Shopify?

Last updated on January 12, 2023 @ 4:33 pm

Yes, all Shopify merchants are required to remit taxes on their sales, regardless of whether they use Shopify Payments or not. There are a few things to keep in mind when it comes to collecting taxes on Shopify:

Shopify will automatically calculate and collect taxes for you if you’re using Shopify Payments, and will remit the taxes to the appropriate government agencies on your behalf. If you’re not using Shopify Payments, you’ll need to use a third-party tax solution to calculate and collect taxes, and then remit the taxes to the appropriate government agencies yourself.

You can learn more about how Shopify handles taxes here: https://help.com/manual/taxes/shopify-calculates-taxes.

Conclusion

In conclusion, all Shopify merchants are required to collect taxes on their sales. Shopify will automatically calculate and collect taxes for you if you’re using Shopify Payments, or you can use a third-party tax solution if you’re not using Shopify Payments. You can learn more about how Shopify handles taxes here:

PRO TIP: If you are using Shopify to sell goods or services, you may be required to collect taxes on your transactions. Depending on your location, you may need to collect state sales tax, local sales tax, or VAT. Failure to collect and remit the proper taxes could result in penalties and interest from the taxing authorities.
Dale Leydon

Dale Leydon

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