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Does Shopify Track Nexus?

Last updated on October 1, 2022 @ 11:04 pm

Yes, Shopify does track nexus. If you are using Shopify to sell products, it is important to be aware of the various tax laws that may apply to your business.

Depending on where your business is located, you may be required to collect and remit sales tax on behalf of your customers.

Nexus is a term used to describe the connection between a business and a taxing jurisdiction. A business has nexus with a jurisdiction when it has a physical presence in that jurisdiction, such as a retail store, warehouse, or office.

Nexus can also be created when a business has an economic presence in a jurisdiction, such as when it sells products online to customers in that jurisdiction.

PRO TIP: If you are using Shopify to sell products online, be aware that the platform may track your nexus information. This means that if you have nexus in multiple states, Shopify could potentially charge you taxes in those states. While this is not necessarily a bad thing, it is something to be aware of.

If your business has nexus with a jurisdiction, you may be required to collect and remit sales tax on behalf of your customers. The rules for sales tax collection and remittance vary from jurisdiction to jurisdiction, so it’s important to research the requirements for the jurisdictions where your business has nexus.

Shopify makes it easy to collect and remit sales tax on behalf of your customers. When you set up your Shopify account, you’ll be prompted to enter your business location.

Based on your location, Shopify will automatically calculate the appropriate sales taxes for each jurisdiction where your business has nexus and add those taxes to the prices of your products at checkout. You can also manually add or edit sales taxes in your Shopify admin.

Conclusion: Yes, Shopify does track nexus and will automatically calculate the appropriate sales taxes for each jurisdiction where your business has nexus. You can also manually add or edit sales taxes in your Shopify admin if necessary.

Madison Geldart

Madison Geldart

Cloud infrastructure engineer and tech mess solver.