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Does Shopify Remit Sales Tax?

Last updated on October 1, 2022 @ 3:03 pm

As an ecommerce business owner, it’s important to know if Shopify remits sales tax on your behalf. Depending on your business location and the products you sell, you may be required to collect and remit sales tax to your state’s tax authority.

Shopify is a web-based platform that allows businesses to create online stores. The company is headquartered in Ottawa, Canada, but has servers located in the United States. Shopify is registered with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) and is a member of the Interactive Advertising Bureau (IAB).

PRO TIP: Shopify does not remit sales tax on behalf of its merchants. Merchants are responsible for remitting sales tax to the appropriate taxing authorities.

Shopify does not currently remit sales tax on behalf of its merchants.

However, the company is working on a solution that will allow merchants to collect and remit sales tax through the Shopify platform. In the meantime, merchants are responsible for collecting and remitting sales tax to the appropriate tax authority.

If you are required to collect and remit sales tax, Shopify provides a sales tax tool that can help you calculate the amount of tax owed for each sale. You can also use a third-party service like TaxJar or Avalara to calculate and file your sales taxes.


Conclusion:
Does Shopify Remit Sales Tax?
No, Shopify does not currently remit sales tax on behalf of its merchants. However, the company is working on a solution that will allow merchants to collect and remit sales tax through the Shopify platform.

Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.