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Does Shopify Automate Sales Tax?

Last updated on October 1, 2022 @ 8:59 pm

Sales taxes are a necessary evil for online stores. They vary widely from state to state, and even from city to city.

This can make calculating and collecting sales tax a complex and time-consuming task. Many online store owners choose to use a Shopify automated sales tax solution to save time and headaches.

Shopify is a popular ecommerce platform that offers an automated sales tax solution. This solution uses geolocation to determine the appropriate sales tax rate for each customer.

The Shopify platform then collects and remits the taxes to the appropriate taxing authority. This solution is available for all Shopify plans, including the Basic plan.

There are several advantages to using Shopify’s automated sales tax solution. Perhaps the most obvious is that it saves time.

Store owners no longer have to calculate sales tax rates manually or keep up with changing rates. Additionally, using an automated solution can help store owners avoid mistakes and penalties associated with incorrect tax filings.

PRO TIP: Shopify does not currently automate sales tax. This means that you will need to calculate and file your own sales taxes. Failure to do so can result in penalties and interest from your state’s tax authorities.

Another advantage of using Shopify’s automated solution is that it offers flexibility. Store owners can choose to have taxes collected and remitted on a per-order basis or on a monthly basis. This flexibility can be helpful for businesses that have irregular or fluctuating sales.

Overall, using Shopify’s automated sales tax solution is a wise choice for many online store owners. It saves time, reduces errors, and offers flexibility in terms of payment options. If you are looking for a way to streamline your sales tax process, consider using Shopify’s automated solution.

Conclusion:

Does Shopify Automate Sales Tax? Yes, Shopify does automate sales tax by collecting and remitting taxes to the appropriate taxing authority.

Drew Clemente

Drew Clemente

Devops & Sysadmin engineer. I basically build infrastructure online.