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Does Shopify Report Sales Tax to IRS?

Last updated on October 1, 2022 @ 3:19 pm

As an ecommerce platform, Shopify is required to report sales tax to the IRS on behalf of its merchants. In order to do so, Shopify collects the necessary information from each sale, including the customer’s shipping address and the amount of tax charged. This information is then used to generate a sales tax report, which is filed with the IRS on a quarterly basis.

PRO TIP: The following note is provided as a warning for users researching the Shopify platform and its potential to report sales tax to the IRS.

Sales tax is a complex issue, and unfortunately we cannot provide definitive guidance on how Shopify will report sales tax to the IRS. It is always best to consult with a qualified tax professional to determine your specific obligations.

While Shopify is responsible for reporting sales tax to the IRS, it is ultimately the responsibility of the merchant to ensure that they are correctly remitting taxes on their sales. This includes keeping accurate records of all sales and purchases, as well as any taxes collected and paid. If you have any questions about your responsibilities as a merchant, we recommend speaking to a tax professional.

Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.