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Does Shopify Automatically Charge Sales Tax?

Last updated on October 1, 2022 @ 1:55 pm

When it comes to eCommerce, one of the most important things to keep in mind is sales tax. Depending on where you are located, as well as the type of product you are selling, you may be required to charge sales tax to your customers.

The good news is, if you are using Shopify as your eCommerce platform, they can help automate this process for you.

Shopify will automatically charge sales tax for orders placed in the United States, Canada, and Europe. For orders placed outside of these regions, you will need to manually set up your taxes through the Shopify settings.

To do this, simply go to Settings > Taxes in your Shopify admin and enter the appropriate information for your location.

PRO TIP: Shopify does not automatically charge sales tax. You are responsible for ensuring that your shop is compliant with all local, state, and federal laws regarding sales tax.

When it comes to calculating sales tax, Shopify takes a few different things into account. First, they will look at the shipping address to see if it is located in a state or province that has a sales tax.

Next, they will look at the product type to see if it is taxable. Lastly, they will look at the total order amount to see if it meets the threshold for taxable orders in your state or province.

If you are selling products that are subject to sales tax, Shopify will automatically add the appropriate amount of tax to the order total when someone places an order on your site. This means that you don’t have to worry about calculating taxes yourself or charging your customers an incorrect amount.

Conclusion: Does Shopify Automatically Charge Sales Tax? Yes, Shopify does automatically charge sales tax for orders placed in the United States, Canada, and Europe.

Kathy McFarland

Kathy McFarland

Devops woman in trade, tech explorer and problem navigator.