Here are some of the most common questions we receive from our Shopify clients:

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How to set up Shopify to charge sales tax?

Before you start charging tax in Shopify, it’s essential to determine where your business has nexus. We can assist with this process! Simply book a one-hour consultation with our sales tax expert using the link below, and we’ll provide all the information you need tailored to your specific situation.

We can also help set up your Shopify store to collect sales tax accurately domestically and internationally: https://pipersalestax.com/category/shopify

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Does Shopify collect sales tax?

Shopify does not automatically collect sales taxes. However, it equips merchants with tools like Shopify Tax to aid in tax management. Additionally, there are third-party tax services that facilitate sales tax management for Shopify merchants.

Every merchant must determine their nexus requirements and acquire a tax identification number from each applicable state. This identification number is integrated into Shopify's tax tools during setup. Furthermore, merchants are tasked with determining the taxable nature of their products in each state and configuring tax collections in Shopify accordingly.

To learn more about setting up sales tax in Shopify, you can book a one-hour consultation with our sales tax expert and explore our Shopify tax setup services here: https://pipersalestax.com/category/shopify

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Does Shopify handle tax remittance?

No, Shopify does not facilitate the remittance of collected sales taxes for merchants. Each merchant is responsible for filing returns and remitting sales taxes to the states where they have nexus.

Shopify offers merchants limited reports that can aid in the filing and remittance of sales tax returns.

If you would like to have a turn-key solution for your sales tax remittance, explore our state filing services here: https://pipersalestax.com/category/shopify

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How to exempt some customers from sales tax?

After creating the customer's profile, select the customer, go to the "Manage Tax Exemptions" section, and uncheck the "Collect Tax" box. It’s also a good practice to upload any tax exemption documents to the customer's profile timeline for reference.

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How to set up shipping tax in Shopify?

Some states tax shipping, and others do not. This is automatically managed by Shopify, except in some states. If you need help with your Shopify setup, book our services here: https://pipersalestax.com/category/shopify

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Does Shopify provide you with tax documents?

Shopify offers some sales tax reports, but currently, they aren’t user-friendly. It’s recommended to create your own reports in Shopify to accurately calculate your sales tax liability.

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Do I need to charge sales tax in Shopify? Does Shopify automatically collect sales tax?

Shopify doesn't automatically collect sales tax. To begin, you need to determine where your business has nexus. Once you’ve identified these states, you can enable sales tax collection in Shopify for each one. You'll also need to register for a sales tax identification number in each state where you have nexus.

We offer registration services for all states to streamline this burdensome process for you: https://pipersalestax.com/category/shopify

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What is Shopify Tax?

Shopify Tax is a Shopify feature that helps automate sales tax calculations. It uses your location and customer information to apply the appropriate tax rates to each order. Shopify Tax is included in all Shopify plans at no additional cost.

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When and how should I remit sales tax?

The frequency and method of remitting sales tax differs from state to state. Some states require monthly filings, while others may only require quarterly or annual submissions. Review the specific filing requirements for each state where you're registered. Each state will communicate the filing requirements to you. 

To file your sales tax returns, get your Shopify report for the state and the specific filing period. Then, log in to the state's tax portal and enter the data for the period. You can then pay the amount due via ACH transfer or credit card.

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