How To Charge Taxes On Your Shopify Store | Easy Method
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- Опубліковано 25 чер 2024
- ****Get A FREE 30 Day Trial Of TaxJar @ shirtschool.com/tax
Are you collecting Sales Tax on your Shopify Print on Demand Sales?
Or did your face just flush reading that??
Don’t panic - today I have a super easy way for you to set it up.
I broke down Sales Tax for Shopify in 3 easy steps.
1. Turn it on and start collecting it on your sales.
2. Make an account with your state.
3. Manage and pay the sales tax with a Shopify app called TaxJar.
Go check it out!
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The video I didn’t know I needed. This was sooooo thorough, thank you so much for the step by step walk through!!
Thank you for the kind words!!
I was so shook after watching a couple of videos and I was like OK I can’t do this but I have to watch your video you made it so simple thank you so much
I love hearing that. Thank you so much
This was so incredibly helpful! I really appreciate you taking the time to explain this. Thank you so much!!
Glad to hear this!
I love your videos! You make the Steps so easy and simple!! Keep up the Good Work! I would love to continue supporting your channel!
Thank you so much!
Very informative and straight to the point! Thanks so much Kerry!
You’re very welcome!
This is the best video that I have seen where you explain taxes and Shopify clearly. Thank you!
Thank you so much
Finally, some explaining this in a simpler way and not speaking as if your audience are tax experts! Appreciate the Info!
Man I love that comment! Thank you
Thank you, thank you, thank you!!!! You made it so simple and straight forward for me. I finally understand what I need to do! Much appreciated ❤
3:38 It is against the law to collect sales tax "just in case" - you MUST hold a seller's permit for the state you are collecting sales tax in, files sales and use tax returns, and remit that sales tax. Do not follow this advise - completely incorrect and harmful to viewers.
Thanks so much! so helpful!
Thank you for this insanely helpful video!!!
Thank you!! I was so confused and overwhelmed about the tax portion. This helped tremendously.
So glad!
This explained everything I needed in 11 minutes, i thank you so much man
Glad to hear that
Wow, this info is gold. Thank you for dropping these gems.
Thank you so much for this! You were clear and straight to the point.
Thanks for watching!
I've watch like 6 videos on this topic and yours made the most sense
Let’s goooooo thank you!
Another legendary video! And this is the first time I've been on your channel!
Dang!! Love it!!
This was soooo helpful! Other videos are so vague but you really made it easy to follow. Sharing this with my friends!
Thank you!
Best explanation that does not try to scare you into buying some sort of consultation or service! I just subscribed!
Let’s goooooo!
Binge watching your channel. To the point information! Just subscribed 💪🏻
Thank you! 🕺🏻
Wow thank you! Super easy! I’m so happy I found your video.
You’re very welcome! Thanks for watching
The most clear and complete explanation that I've found. Thank you Kerry!
OMG thank you so much for those kind words!
Agreed. Just subscribed for that reason
Kerry this is golden..you gotta be the goat!
3:38 It is against the law to collect sales tax "just in case" - you MUST hold a seller's permit for the state you are collecting sales tax in, files sales and use tax returns, and remit that sales tax. Do not follow this advise - completely incorrect and harmful to viewers.
Perfect timing, Kerry!!! Just got my state's Sales & Use Tax license!!! Thanks for this!
Let’s gooooo !
@@KerryEgeler Opening a Brick & Mortar for Luv Pup so very anxious for that POD to Screen Printing training!
This was helpful thank you
just started my company and you have been great I absolutely love your videos and will always come back to your page for advice or how to’s thank you!
Thank you so much!
First video I found that actually explained it clearly
🕺🏻🔥
Definitely learned some valuable info here. Thanks boss man
Thank you for watching!
Hey Kerry, thank you so much for this video!!!!
You’re very welcome!
I don't typically comment or like UA-cam videos - But when I do, it means the video was FREAKING HELPFUL! THANK YOU!
OMG thank you! You’re very welcome!
Great video, very useful information! Thanks!!
You’re welcome!
We’re here in Oklahoma! THANK YOU for this!!!
You’re very welcome!!
Bro your a blessing, this video saved me I was mad close to giving up after spending hours making my store🙏🏾
Thank you for watching and thanks for your comment!
Super helpful man! Thanks a bunch!
You’re welcome!
Thankyou so much, such great video, very helpful
Thank you for watching
INSTANT FOLLOW THANK YOU! just launched today and was confused about this topic thank you!!
Thank you! Great video!
Thank you for watching!
Thank You, Great information.
Very welcome!
Thank you so much. Straight to the point and well explained.
You’re very welcome!
3:38 It is against the law to collect sales tax "just in case" - you MUST hold a seller's permit for the state you are collecting sales tax in, files sales and use tax returns, and remit that sales tax. Do not follow this advise - completely incorrect and harmful to viewers.
This was super helpful. Thanks
No problem
thank you so much seriously I subcribed
I think there are two separate kinds of nexus. Physical nexus, meaning you have a physical presence within that state and Economic nexus. Economic nexus is when you are required to collect and pay after you have hit a certain threshold of sales. Not sure about the details on economic. Also you don’t need to have a LLC to register for sales tax. You can do this as a sole proprietor as well.
Your video was extremely informative, thank you. Some updates in Florida: It is required as of July 1st 2021 to collect sales tax although you are only selling online. Also, TaxJar requires a subscription to autofile ($20 a month) plus it is $30 more per auto file.
Tax jar saves you about a million dollars worth of time, worth it
i’d rather pay those fees and make sure i’m paying proper taxes , also not stressing myself out by paying them myself
What does this mean for Florida?
Giving me a lot of hope goin forward w my website
Thank you ! For making this extremely simple ! I went threw a couple of tutorials and I was about to pull my hair out tryin to understand LOL
Same for me literally going crazy lol I’m so happy I found this video
Exactly i dont have ny business permit i was worried about taxed thank you for explaining exactly same idea start first when we earn and love to continue thats the moment to start the permit process
Thank you!!!!!!!
Hey, Kerry!
Great content as usual. Greetings from Egypt!
What about the economic nexus? Which means that even if you are not a resident or having some sort of physical nexus in the US, you'd be still charged tax.
For example, if you're using Printful as your dropshipper, they HAVE TO collect taxes as they have nexus in the US. Eventually, they might collect it and deduct it among their costs I guess.
This is what I got of various vids about this topic. Hopefully you correct me if I'm wrong.
Stay safe, awesome and productive!
I opened and LLC first to start my small business and now I'm going to start my shopify store and I'm nervous. This is the clearest explanation I have heard on where to collect taxes. Thank you!!!
You're so welcome!
Best informative video yet, I was extremely confused and you just made it so simple.
Awesome
Thank you so much for this info...I was kinda worried 😟
You’re very welcome!
Thanks for educating.
Thank you for watching!
@@KerryEgeler Let's meet up and rub minds if you're ever in New York. God bless.
Thank you!!!
Great Video
Kerry, that was a life saver of a video 💙
Just one question as I am planning on launching my Shopify store from overseas (Europe).
Is there some automated way to determine whether I have an economic nexus already established with some state?
Or I should set up all the states from day one with tax jar on board?
Or am I simply overthinking? 😜
Thx for response 😉
Thanks a lot man, I'm trying my luck in the tshirt business and was a little perplexed on how to make sure my taxes are being collected.
Glad I could help
Thank you very much man
No problem
Thanks Im actually From Oklahoma!!
Cool!
Absolute best video on this subject. How on Earth are the other youtubers skipping over this??!?! Thanks man.
Thank you so much!
***Get A FREE 30 Day Trial Of TaxJar @ shirtschool.com/tax
Hey Kerry, nice video. I was wondering how to do that same thing . You are a generous man. I would surely subscribe to your Chanel for sure.
I’m the mean time, the person that designed my store, he have my country set to his location which is Pakistan and now I’m trying to have it change to to the USA but when I click on his country where it should be change from its not showing any other country but his. How can I have this change? Thank you.
All great useful information. Could you possibly do a video about charging VAT for small businesses?
I’m not familiar with VAT
Thanks so much for this video!!!!! Do purchases on other states will not be taxed? But do we still have to pay tax on them?
This was super helpful!! This whole time Im thinking sales tax and state taxes are the same thing. Would you be able to make a video on how to file your sales tax in your state and how.
I have only ever filed in Oklahoma
im not the kinde guy that posts comments but this is somethink else. i was frustrated whan it came to taxes as a beginner i looked through a lot of videos but i got more confused until i found your video which was so clear and easy to understand. thank you so much
Wow, thanks so much! Taxes can be extremely frustrating. Glad this helps!
Hi Kerry, thanks for the useful video.
There's a section in the settings now where you need to categorize your products, which seems super important, since each product category has a different percentage.
Have you covered this in a different video?
God bless you !
BEST VIDEO!!!!!!!!!!!!!!
🕺🏻🕺🏻🕺🏻
what a fucking blessing you are... this is the first time ive had a shopify video go smooth because we are in the same state, thank you
Glad to here that!
Hi Kerry, this is such an amazing video. I just want to confirm that I only need to collect sale tax in my state only?
Thank you!
That is correct, but double check your state
Thank you so much! I'm just starting and have a huge migraine trying to figure out the tax thing and with you saying I don't have to worry about it right now because I don't have my LLC due to not having money and don't know if it's worth it I can breathe and open my shop.
Yes! It can seem like a lot up front, but you've got this!
Great video my friend. I have a quick question. Does Shopify have a setting that it doesn’t show that I’m collecting taxes yet it will collected on the back end and put it on that jar app that you mentioned? Example my shirt is priced at $25 and I want to includ the sales tax on that price but I don’t want my customers to see it. Thanks
Aside from physical location economic nexus should be considered as well and if you have remote employees you might have nexus as well. I would not recommend to collect sales tax before you have permits from state to do so.
Wth man thank you so much
If you use a POD like Printify, that has print providers all over the country, they actually charge you tax for all your orders. That means even though you only owe tax in one state, your customers all over the country has to pay it (or you pay it on their behalf) directly to Pintify. It sucks, but that appears to now be the way it works at least with them.
Ayyyyeee Oklahoma Gang 🫡
🔥🔥 Tornado crew
Bruh, I have Hawaiian LLC, but planning to have a virtual office in Florida, is that state part of the Tax Nexus? By the way, love your snappy and straightforward explanation man. Subscribed!
FL has no state sales tax at all!
Thanks for the info! Do you know if TaxJar automates use taxes too? I’m going to need to pay them since I’ll be selling via POD
You have the best videos. Thank you. I live and I am incorporated in the state of Montana. Montana does not have sales tax, but I sell to people on shopify in other states. I think I understand you are saying no, I only charge sales tax for the state I live in. So if MT has no sales tax, then I don't charge sales tax to anyone?
3:38 It is against the law to collect sales tax "just in case" - you MUST hold a seller's permit for the state you are collecting sales tax in, files sales and use tax returns, and remit that sales tax. Do not follow this advise - completely incorrect and harmful to viewers.
So I have a question.
Do I charge the customer sales tax in other states where i am not paying sales tax to that state? I’m operating out of California so obviously I’d collect sales tax for anything sold in California but what about the other states?
Thank you so much for this video. Just wanted to know. I registered my business because I thought I needed to right away. And Im goin to have to pay 3 months before I’m anticipating to launch. What happens if I haven’t started my business before the time needed to pay back?
Usually if your business is registered, then the state will want you to pay sales tax on the sales you’ve made. Hope this helps 🙏🏻
I wanted to do what you say about Not to collect taxes at the beginning, but shopify reported me that I needed to do it, and checking the NY state law, they say that even sole proprietorship Must register for tax collect and register the business before starting. So, I had to do it before opening the online store.
Do your thing!
Should I make sales before setting up sales taxes on shopify to collect?
Great video! Don’t I have to charge sales tax on shipping also?
Nope
Hey Kerry, is the sales tax id # the same as an EIN (for the state you are incorporated)?
Hello, thanks for this video. So do I have to report sales in other states? Or just report sales from within my state?
Look at local laws in your state, but generally you only collect sales tax from sales made inside your state.
what if your shop is in Canada and you're selling in the states?
So When do I need to get a sales tax permit or do I even need one if I use Tax Jar?
Thanks so much for explaining. Question: at 3:46 you mentioned prior to registering an LLC/license/tax permit etc., to still proceed with setting up sales tax in Shopify so you’re collecting it, and just set it aside in case you have to come back and pay those taxes once biz is set up.
But the US sales tax page in Shopify (shown at 5:08) reads “If you have a nexus, you can start collecting taxes once you’re registered with the appropriate tax authority”. So does this mean that even if you add your state (with nexus) now, tax wont be collected until registering with the appropriate tax authority? Or does it just say that, and will still allow you to collect tax prior to registering with the state?
Thanks again!
pardon, did you find this answer to your questions? because i have the same questions...
Wow
Does taxjar deal with sales taxes and income taxes? Thanks 😁 Most helpful video I’ve seen on taxes!
Edit: is there a better substitute for taxjar since after looking through reviews their service seems to be terrible now then it was before… thanks.
If you don’t use an app, you can do it manually. When I was doing it manually, it would take me 3-4 hours on average in one sitting to process my sales taxes each month. This could be quicker depending on how good the system is in your state. Oklahoma stinks.
Correct me if I’m wrong, but when running a Shopify print on demand store, are you paying taxes twice on one product? Once when the product is purchased from Printful or Printify, and again when it is sold to the customer shopping in my Shopify store, since we have to collect tax for the irs as well as pay it since we are middlemen right?
Sales tax is 7.84% in my state, so if this is right then I could be looking at a total of 15.68% sales tax total for my state for each product I sell.
I’m trying to figure out how to price my products, and this thought crossed my mind.
Great video! Have the rules changed for/in 2022? If so, do you have an update for us? Thank you. :)
As far as I’m aware, this process is still current!
We have to collect sales tax for in state and out of state for TN
I been doing a lot of research in this topic but from my understanding is if you reside in one state and you sell your product in another state your considered to have an entity in that state there for you have to pay sales tax for that state as well so this is where I’m confused in , you provide great transparency in your video , but I’m still confused on this aspect please clarify if you can
You pay sales tax on sales made inside your state. No sales tax on sales made outside your state unless you have an office in that state. There are a few exceptions, but this is the case for the vast majority of small businesses.
@@KerryEgeler thank you for the clarification and fast reply , just subscribed 👍🏽
@@KerryEgeler Hey I have another question so my supplier that I use is located in New York and I’m located in Texas but every time that I make a transaction through his store for me to drop ship they charge me A percentage in Sales Tax When we’re shipping to different states , But as you said I can only charge sales tax With transactions in my state So I don’t charge any sales tax out of state, How does that work?
My business c corporation is in Wyoming but I live in Florida. Do I correct for both of those states and pay both states??
I was in affiliate marketing only before but looking to start print on demand
Hi Kerry, What happens if you are a remote merchant? I live in The Netherlands but want to sell supplements to the US. The supplements are a POD company in the US. Will I need to pay sales a tax?
After how much money does one pay sales tax?
Hey question because I’m so confused and been trying so hard to understand. Your video helps a lot but my question is let’s just say we are using your account to sell stuff. You only turned on sales tax for your state of Oklahoma but what if something sells in South Carolina? You only turned on sales tax for Oklahoma so do you have to turn it on for South Carolina since you sold it there? Or is it only turned on for the state where you are physically located?
In most states, you only need to worry about sales within your state
What if there buying from NY and I’m in CA cause taxes don’t pop up in check out ?
I have a Shopify store and I’m having trouble to setting up tax for my state. I’m not seeing Texas in the drop down box where it shows the difference state options. What can I do?
so do i have to set up it for each state? you said that people in oklahoma would only be charged sales tax... so does that mean if you only set up oklahoma people in californa wont get charged sales tax?