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Does Shopify automatically collect sales tax?

Last updated on September 25, 2022 @ 2:48 am

Shopify is one of the most popular ecommerce platforms on the internet. It’s used by thousands of businesses, including some of the biggest names in the world.

The platform is very user-friendly, and it’s easy to set up your own shop. However, one question that many business owners struggle with is whether or not Shopify automatically collects sales tax.

In short, the answer is that Shopify does not automatically collect sales tax. This is something that you will have to take care of on your own.

PRO TIP: Shopify does not automatically collect sales tax. You are responsible for remitting the correct amount of tax to the appropriate tax authority.

However, there are a few things that you can do to help make the process easier. For example, you can use a sales tax software platform like TaxAct to help you collect and report your sales tax data.

Alternatively, you can use a third-party ecommerce platform that collects sales tax for you. These platforms typically charge a small fee, but they can save you a lot of time and hassle.

The bottom line is that you will have to take care of the collection and reporting of sales tax on your own. However, using a platform like TaxAct or a third-party ecommerce platform can make the process much easier.

Madison Geldart

Madison Geldart

Cloud infrastructure engineer and tech mess solver.