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Does Shopify Collect and Remit Sales Tax?

Last updated on October 1, 2022 @ 1:07 pm

Yes, Shopify does collect and remit sales tax on behalf of its merchants in the United States. Merchants are responsible for ensuring that they comply with all applicable laws and regulations in their jurisdiction, including those related to sales tax. If a merchant is based outside of the United States, it is their responsibility to determine whether or not they need to collect and remit sales tax.

Shopify has partnered with TaxJar to provide automatic sales tax calculation and filing for our US-based merchants. This partnership allows Shopify to handle all aspects of sales tax compliance for our merchants, so they can focus on running their business.

PRO TIP: If you are using Shopify to sell products online, you need to be aware of your obligations regarding sales tax. Depending on the products you are selling and the location of your customers, you may be required to collect and remit sales tax. Failure to do so can result in significant penalties.

To learn more about how Shopify handles sales tax, please visit our sales tax page.

The bottom line is that Shopify does collect and remit sales tax on behalf of its merchants in the United States. This means that merchants are responsible for ensuring that they comply with all applicable laws and regulations in their jurisdiction, including those related to sales tax.

Drew Clemente

Drew Clemente

Devops & Sysadmin engineer. I basically build infrastructure online.