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How Do I Automate Sales Tax on Shopify?

Last updated on October 2, 2022 @ 3:40 am

Sales tax can be a complicated and time-consuming process, but it doesn’t have to be. You can use Shopify’s built-in sales tax settings to automate sales tax on your store.

To get started, go to your Shopify admin and click Settings > Taxes. From here, you can add and edit your sales tax settings.

If you’re just starting out, the best way to automate sales tax is to use Shopify’s Automatic Collection feature. This will automatically calculate and collect sales tax for you based on your store’s location and the customer’s shipping address.

PRO TIP: If you are thinking about automating your sales tax on Shopify, be aware that there are some potential risks. First, if you automate your sales tax, you will no longer be able to manually override the tax rate if necessary. Second, if you have products that are subject to different tax rates in different states, automating your sales tax could result in you over- or under-charging your customers. Finally, if you use Shopify’s built-in automated sales tax feature, be aware that Shopify may share your sales data with the states in which you have nexus.

To enable Automatic Collection, simply check the box next to “Enable Automatic Collection.” Once you’ve done this, Shopify will automatically calculate and collect sales tax for all orders placed on your store.

If you need more control over your sales tax settings, you can also use Shopify’s manual collection feature. With this method, you’ll need to manually calculate and collect sales tax for each order.

To enable manual collection, uncheck the box next to “Enable Automatic Collection.” Once you’ve done this, you’ll need to enter the relevant sales tax information for each order during checkout.

Whether you use automatic or manual collection, Shopify makes it easy to automate sales tax on your store. With just a few clicks, you can get started and start collecting sales tax without any hassle.

Kathy McFarland

Kathy McFarland

Devops woman in trade, tech explorer and problem navigator.