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Do I charge sales tax for out of state customers Shopify?

Last updated on September 25, 2022 @ 2:37 am

As a business owner, you have undoubtedly heard the phrase “you are responsible for taxes on your sales”. This is something to keep in mind when selling products to customers who are not located in your state.

If you are selling items to customers who are not located in your state, you are generally responsible for paying taxes on those sales. This means that you will need to contact your state’s tax authority to find out what tax rates apply to your business, and then determine how much of that tax you will need to remit to your state.

PRO TIP: If you are selling goods and services online, you may be required to collect and remit sales tax to the appropriate state tax authority. This includes sales to customers in other states.

Keep in mind that you may also be subject to other taxes, such as value-added taxes, that are not related to sales. In order to ensure that you are paying all of the taxes that are applicable to your business, it is important to consult with an accountant or tax specialist.

Finally, it is important to keep in mind that not all customers who are not located in your state are considered to be “outsiders” for tax purposes. In some cases, customers who are temporarily located outside of your state may be considered to be part of your customer base for tax purposes.

Overall, it is important to keep track of all of the taxes that are applicable to your business, and to ensure that you are remitting the correct amount of tax to your state. Doing so will help to ensure that your business is operating within the legal boundaries of the state in which it is located.

Drew Clemente

Drew Clemente

Devops & Sysadmin engineer. I basically build infrastructure online.