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Does Shopify Pay My Sales Tax?

Last updated on October 2, 2022 @ 5:26 am

Sales tax is one of the most important things to consider when you are setting up your Shopify store. Depending on your location, you may be required to collect and remit sales tax to your state or local government.

Shopify can help you with calculating, collecting, and remitting sales tax. Even if you are not required to collect sales tax, you may still need to pay taxes on your Shopify sales.

PRO TIP: Shopify does not currently pay your sales tax for you. This is something that you, as the business owner, will need to take care of. Depending on your location, you may need to collect and remit sales tax to multiple states. Failure to do so can result in hefty fines from the state (orstates) in question.

Here are some things to keep in mind when it comes to taxes and Shopify:

  • Shopify does not pay your taxes for you. It is your responsibility as a business owner to ensure that you are compliant with all tax laws and regulations.

    This includes collecting and remitting sales tax, as well as paying any other taxes that may be applicable to your business.

  • You may need to collect sales tax even if Shopify is not located in your state. If you have nexus in a state (meaning you have a physical presence or meet certain other criteria), you may be required to collect and remit sales tax even if Shopify is not located in that state.
  • Shopify can help you calculate, collect, and remit sales tax. Shopify can calculate sales tax for orders placed in the United States, Canada, Europe, Australia, New Zealand, and Singapore. For orders placed in other countries, Shopify will calculate the VAT (Value Added Tax) for you.

Does Shopify Pay My Sales Tax?

No, Shopify does not pay your taxes for you. It is your responsibility as a business owner to ensure that you are compliant with all tax laws and regulations. This includes collecting and remitting sales tax, as well as paying any other taxes that may be applicable to your business.

Dale Leydon

Dale Leydon

Sysadmin turned Javascript developer. Owner of 20+ apps graveyard, and a couple of successful ones.