Collecting Sales Tax in Shopify | Out of State Requirements
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- Опубліковано 25 чер 2024
- Does Shopify automatically collect sales tax? What about for out of state customers? What do you need to know and do to collect sales tax in Shopify? These are questions I'm addressing in this video. Sales tax is confusing. New business owners need to know what tax nexus is and when it applies to them for each state.
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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this video is for informational purposes only and does not provide legal or tax advice.
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Let's collect sales tax correctly!
-elle gee
Should you collect sales tax from shoppers in other states on day 1?
Been watching many vids on this - yours is definitely the best!
Great to hear! thank you!
Thank you so much for speaking at a slow pace and breaking it down so it’s easy to fully understand how the tax requirements work. Appreciate you pretty lady, you are the best! 😊
You are so welcome! and thank you 💛😊
Thank you so much this is the only video that has been so helpful! Iv searched many and you made it so clear and understandable I know this can be very scary and confusing for new businesses owners. Thanks so much!
You're so welcome!
Thank you!!! That is a very detailed explanation and easy to understand.
You're very welcome!
This video helped me understand so clearly! Thank you for breaking it down!
You're so welcome!
Thank you!!!!! I am starting my small business, and this is something that had me so worried. I wasn't sure about the whole tax situation which in some way has been stopping me from doing my shopify account. This was very helpful and you explained it very well. Now time to check with my tax person. Stay blessed.
I'm so glad it was helpful! good luck, you're going to kill it!!
Thank you. That was a very detailed explanation just what I have been looking for your video answered so many of my questions.
awesome! glad it was helpful!
Very informal, thank you so much!! 💕
This was incredibly helpful, thank you so much for this video .
you're so welcome!
Awesome thanks. And thank you for recommending the link . They contacted me back and I was able to clarify my confusion wirh tax in my state ❤. Many blessings 🙌 on your channel 🙏
Great to hear! you are welcome!
Crystal clear! Thank you so much!
So glad!
Thanks for the info. I truly appreciate it.
you are welcome!
OMG honestly THANK YOU SO MUCH I've been super confused about this and you explained it super good=)
I'm so glad! you are welcome!
Awesome video, like seriously. So it looks like to even be worrying about this sales tax stuff your store has gotta be doing basically 6-7 figures a year unless you have a ton of people from one state buying from you
yeah, pretty much! thank you!
This is so fascinating because I'm in Oregon and have been struggling with Shopify tax not showing up on my test orders to other states. It's made me wary to launch my shop because I don't want to have anything go wrong. But on Etsy which I've been using for YEARS, it totally charges based on the recipient's state. Thank you for this information!
you are welcome!
You’re a lifesaver thank you
you are welcome!
Literally thank you
You are welcome!
Yes thank you. I want to see a video on how to setup tax
You are just amazing Lady!
thank you!
Nice job!
Very helpful!
So glad!
Omg thank you, so helpful with examples. I almost stopped/quit setting up my online shop.
Feeling hopeful. Can you talk more about shopify tax set up and also if my store is out of my garage(warehouse) how can i manage so it doesn’t show on my billing for costumer and shipping label. Is there a way to do it with out disclosing my home address?
Thank you
Thank you for sharing this
You bet!
Great video! The only thing that I am still unsure about is if I need to collect in 2 states because I originally formed my business in florida and then opened a foreign entity in texas. I am currently collecting in texas as that is where I do all my work now, but wasn't sure as to if I would need to collect in florida as well even though I don't meet the revenue to qualify for nexus in florida. Any non legal advice would be awesome 🙂
Good question! I don't have any experience with foreign entities...maybe you can get a free consult from an accountant!
OMG thank you sooo much for making this much simpler to understand. i just launched 12/1/22, in FL, but i don't see tax being add to purchase even though im registered to collect tax in FL on my shopify store.
welcome!
How it works, this looks a little confused since I don’t know an idea business
Thank you for the useful video! Quick question - is the TOTAL revenue threshold a yearly number? Or overall? I.e. if my sales in Florida reach $100,000 in the second year of business, but $80,000 is from the second year, does it mean I've reached the threshold?
Hi! Is there a second video coming with how it looks on Shopifys end? Also, is there an app that you add to shopify that helps calculate each state or helps with taxes information? Thanks in advance!
here is the link to the second video I created. let me know if it is not what you had in mind!
hi so do i need to add every state in the "regions your collecting in" in shopify?
Okay so i have a question. If i get a $20 purchase from ohio and i’m originally from california, do i calculate that tax in california % and file it or i don’t file out of state purchases at all.
When you say for Ohio as example that you need to start collecting sales tax after 200 sales from the state, is that for the lifetime of your sales in Ohio, or within a calendar window? So if You Sell 80k and 201 sales in Ohio one year, and 50k and 199 the next,. do you still need to collect sales tax in that state since the threshold is not met that second year?
If you past that threshold in a particular state for one year, do you have to pay sales tax on only sale AFTER that threshold? Or do you have to pay taxes on the amount prior to that threshold as well? (Previously not collecting tax on that amount)
This is so helpful! I realized I was only receiving sales tax for my state and freaked out because I thought I was supposed to be collecting sales tax everywhere. So I added sales tax for every state in Shopify and THEN I saw this video. It’s only been a couple days so I probably collected sales tax for one purchase from a couple of states. I’ve now changed it back to collecting sales tax from my state. Can I get in trouble for those few purchases? 😭 thanks!
Glad it was helpful! I would consult with an accountant to discuss further. you should be able to find one who will do a free consult and provide a recommendation :)
@@LetsBuildaBoutique thanks so much!!
How did you add sales tax on Shopify I can’t find setting?
How do you inform customers about use tax in states you don't have nexus?
I just started and got 1 sale. I live in wisconsin and my shop is an online shop through shopify. Do i need to immediately collect and remit in wisconsin?
Hello, I started a online store a few days ago. I live in Qatar (tax and vat free) so do i need to charge sales tax to US customers? If i do do i have to pay sale taxes to the us government?
so if im just staring a shopify store, the only sales tax I need to setup is where I live, Florida, until I build an economic nexus in other states. And for income tax, is there a threshold I need to hit before I have to pay that too? I have no sales yet and I was just building my store but then fell down this rabbit hole.
correct! I recommend working with an accountant to discuss income tax. you will have to file taxes at set points (could be quarterly or annually for example) regardless of how much you make. here is an article about self-employment earnings starting at $400 www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center
im wondering do I need a vendors license and a transient vendors license if I sell online but also at markets? or does the transient one cover both?
I'm not sure!
Thank You for the knowledge. I have a question. Do I still pay sale tax to the IRS for the other states that I am not collecting in ?
Hi Did you figure it out??
I’m still a little confused :(
I am opening a Shopify to resell products online. When I get orders from out of state do I charge them my state (IL) taxes or do I not charge tax at all ?
if you have made zero sales in the state, you will not charge them. you will only begin to charge them once you've met the tax nexus in that state.
@@LetsBuildaBoutique thank you so much for the response. I appreciate it 🤍
Dang I have no clue. Now I have to be careful.
hire an accountant to take the guess work out :)
Do you collect the taxes or shopify collects it for you?
How do I get a sales tax permit?
check out this video! ua-cam.com/video/4y6Mno8Lr3A/v-deo.html
Each state will have something like a department of revenue where you can register and receive your permit.
We're are you from
USA
Seems like the sales tax collection burden is in sellers shoulders. It's a lots of work for constantly checking 50 state's requirements. Shouldn't the government have a one single tax across all states, or the government needs to handle it with its tax-paid employees? I'm amazed that no one complain about the layers of layers burden, it's your time, your energy used for free to hand in money.
for sure, I guess that's why we have accountants and eventually when your business scales you'll hire one in house!
Hello mam
hi!
Delaware is spelled wrong in your presentation.
oops!
what a pain
that seems to be a common theme as a business owner 😊
Thank you so much! This video was very helpful and useful! 🥹
You're so welcome!