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Does Shopify Report Sales Tax?

Last updated on October 1, 2022 @ 1:16 pm

As an ecommerce business, you are responsible for collecting and remitting sales tax to the appropriate tax authorities. This can be a daunting task, made even more complicated by the fact that sales tax rates vary from state to state, and sometimes even from city to city.

Shopify is a popular ecommerce platform that helps businesses set up and run their online stores. One of the features that makes Shopify attractive to ecommerce businesses is that it offers built-in sales tax functionality. This means that businesses using Shopify can automate the sales tax calculation and collection process.

Does Shopify Report Sales Tax?

The short answer is yes, Shopify does report sales tax. When you set up your Shopify account, you will be asked to provide your business location. Based on your location, Shopify will automatically calculate and collect the appropriate sales tax for your orders. You can also manually add or edit sales tax rates in your Shopify settings.

PRO TIP: If you are thinking about using Shopify to sell products online, be aware that the platform does not currently offer sales tax reporting. This means that you will be responsible for keeping track of your own sales tax obligations and ensuring that you remit the correct amount to the appropriate authorities. Failure to do so could result in penalties and interest charges.


Shopify will generate a sales tax report that you can use to file your taxes. This report will include all of the necessary information, such as the total amount of sales tax collected, the total amount of taxes remitted, and the date range for the report.

does a great job of handling sales tax for its merchants. It’s easy to set up and use, and it takes care of calculating, collecting, and remitting taxes on behalf of its merchants. This makes it one less thing for ecommerce businesses to have to worry about.

Drew Clemente

Drew Clemente

Devops & Sysadmin engineer. I basically build infrastructure online.