UPDATED Shopify Sales Tax Setup Guide | A complete walk-through

A lot has changed with Shopify's sales tax dashboard since we first made a Shopify Sales Tax Setup Guide video 3 years ago. It's become much more comprehensive and easy to use.

In this video, Kexin walks through the updated UI of Shopify and shows how to set up the sales tax settings for your store. She covers:
👉 Managing tax collection
👉 Tax rates & exemptions
👉 Reporting
👉 The importance of categorizing products
👉 Setting up locations correctly

Shopify's new tax settings section is so much more useful now!

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🔥 For information on our SALES TAX COURSES designed specifically for online sellers and accountants working with ecommerce clients:

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⬇️ MORE STUFF YOU SHOULD CHECK OUT ⬇️

** For a clear idea of where you are in the process of sales tax compliance, take our SALES TAX QUIZ: **

** MORE SALES TAX RESOURCES **

** DOWNLOAD: 10 Steps to Ensure Sales Tax Doesn’t Burn Down Your Ecommerce Business”: **

** BLOG: Complete Guide to Sales Tax Nexus for eCommerce Sellers: **
** Our VIDEO:

"** BLOG: Shopify Sales Tax Report | How to Find & Understand It: **
** Our VIDEO: **

** VIDEO: eCommerce Sales Tax | When Do Sellers Need to Collect? **

** VIDEO: Do You Qualify for a Sales Tax Exemption? **

** The OLD Shopify Sales Tax Setup Guide video **

** If you're interested in our ECOMMERCE ACCOUNTING SERVICES, click here to contact us: **

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🧑‍💻 EMPLOYMENT OPPORTUNITIES:

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👋 SAY HI ON SOCIAL:

#shopifysalestax #ledgergurus #onlinesalestax

[Purrfect.moments]

This video is very helpful. I've been looking for months. Thank you so much!

[kathyberger]

Your video was so very informative and I have subscribed to your channel! ❤

[stroyboy]

Finding that shopify report has helped so much! Thank you

[julissalebron]

I love all your videos and the way you explain everything. Can you do a video of how to get the report from sale tax from the state you are charging taxes.

[bncaofficial]

Thank you much for the video, It's very helpful. I am creating a Shopify store for fundraising for my nonprofit organization which is registered in the state of Georgia but I am working from Massachusetts and shipping stuff from Massachuttesset, should I pay tax to the state of Massachutteset or Georgia?

[roseamy]

I love that shopify is doing this! makes tracking so much easier! My question is, do I need a permit in the state of Illinois to begin collecting sales tax or is not required until I am about to meet that threshold, and how is there a software that can pay/remit those sales taxes for me?

[TennisSkunkworks]

Do you recommend setting up a separate bank account to deposit the taxes collected? And is there a way to direct the taxes collected by Shopify to the taxes bank account? Your videos are incredibly helpful!!

[doalot]

Thanks for sharing! Do you know if Launch Cart offers this type of ease of setup for sales taxes? Its shopify competition.

[cecilialopez]

Great video! I do have a few questions. First question does this new shopify sales tax act as a sales tax engine and should I download an app like TaxRex for sales tax filings? Second question I just started a Print on Demand Clothing brand and selling through Shopify I am based out of CA, am I only responsible to report taxes in CA since I'm an online store or do I have to get a sellers permit for every state that I sell too? Lastly, since I use a Print on Demand platform Printify to make my products they ship out from different locations that I won't know the addresses too I am still responsible to report those locations when I am using their services?

[zpqwwrb]

Do you have a video reporting the sales tax per state ?

[ContinentalCue]

Great content. I am just starting up a clothing business. Do I need to use my personal identification? I don't have a business company or llc yet. What's best?

[informative]

Hi,
Video is quite informative. I recently launched a new Shopify store. My business is dropshipping from Virginia, and all of the products are in placed in China. I added VA to the area where I collect sales tax. Do I also need to mention where our products are shipped to other states?

[t.h]

Excellent video...thank you for posting. I am trying to wrap my head around this so I would like to summarize my understanding with a question. I plan to sell a book (quantity 900) from my garage in southern California. Profits will not break $15, 000. I understand that Shopify Tax will calculate sales, generate reports, and inform me when taxes need to be paid per state based on economic Nexus. I also understand that tax filing requirement is different state by state. With an established LLC, when will I know to file taxes? Does the Shopify Tax program inform me?

[Morpheusv]

That was a very helpful video, thank you. I have a few questions. I want to start a print on demand business on printify with a store on shopify. I am based in the EU but my print provider would be in the USA and so would my customers. If I understand correctly, I can just go ahead and start without having to register in the USA for taxes or anything. All I need to watch are my nexus thresholds for sales taxes. Are there VAT taxes or any other taxes I should worry about? Thank you

[GinAmber]

Hello! Why is it that other States charges so many different types of taxes? Is this normal? Or is this with Shopify Stores only? I had a client asking why was she charged for state and county at the same time and this has never happened with her orders on other stores (even for bigger businesses). I have a skincare brand and would definitely appreciate your help in understanding the taxes. Thank you!

Another ex. I have a client that was charged the following taxes on 1 order:
Illinois State Tax
Cook County Tax
Elk Grove Village City Tax
Regional Transport Authority

I think it's a lot and most of these are unfamiliar to me. My business is only based in Florida

[zpqwwrb]

Do you also report sales tax per county??

[doris]

Thank you for the video. Setting up our new print on demand shopify store & has been stuck at the tax issue for a while. Some of our products are supplied from EU, while some are supplied from US. How do we set up the tax? Also, since we are new store, our physical presence is in CA. If customers purchased from other states, do we have to pre-collect the sales tax on Shopify and refund tax by end of tax season if we don't hit the economic nexus in other states? Thank you in advance for your help.

[BrianRod-pujw]

Hey so I’ve noticed that even cities and counties have different tax rate percentage in the same state. So I’m wondering how would I calculate a bunch of orders here in Florida when it’s time to remit since the rates are all different? Or does Shopify separate and calculate each taxes per order since the rates are different per city? Also when do you recommend remitting sales tax monthly or quarterly?

[BrianRod-pujw]

Thanks very informative! I have a few questions in regards to collecting sales tax. We can only start collecting sales tax when the threshold has been met or you have physical presence but I am confused on why click charge tax on this product? Also if we don’t have nexus in a state and are not collecting sales tax when a customer purchases a product are they not paying sales tax on it since I am not collecting from them or is it being collected to my physical presence state?

[msevupd]

I live in MA and my LLC / Store is out of Delaware. Can I just put my EIN in the mass tax ID spot for a while or should I register right away with the state? Also, one other LLC member in CA, so same question for him. (We have assumed both of us create physical nexus in our respective states and don’t have to worry about DE) Thanks & Great Vid!