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Does Shopify Automatically Pay Sales Tax?

Last updated on October 1, 2022 @ 1:31 pm

Sales tax is one of the many necessary evils of running a business. It’s a complex and ever-changing landscape, and one that can trip up even the most savvy entrepreneurs.

So it’s no wonder that many business owners turn to Shopify to help them navigate the world of sales tax. But does Shopify automatically pay sales tax?

The short answer is: it depends.Shopify can help you calculate, collect, and remit sales taxes, but it doesn’t automatically pay them for you. That responsibility falls on the business owner. However, there are a few caveats to keep in mind.

PRO TIP: Shopify does not automatically pay sales tax. You are responsible for paying any and all taxes associated with your use of Shopify. Failure to pay taxes may result in civil or criminal penalties.

First, if you’re using Shopify Payments, taxes will be calculated and collected automatically at checkout. That means you don’t have to worry about calculating sales tax yourself or setting up a separate system to collect it.

Second, if you’re using a third-party payment processor (like PayPal or Stripe), you’ll need to set up your own system for calculating and collecting sales tax. And finally, even if you’re using Shopify Payments, you may still be responsible for remitting sales tax to the appropriate authorities.

So while Shopify can make paying sales tax a bit easier, it’s still ultimately the responsibility of the business owner to make sure that taxes are paid on time and in full.

Kathy McFarland

Kathy McFarland

Devops woman in trade, tech explorer and problem navigator.