No, it doesn’t. Shopify has no record of collecting or remitting sales taxes for her customers without their permission. It would never do that unless the customers authorize her to.

Some merchants may be too busy to do their business and remit sales tax. It may even be exhausting most of the time. Shopify understands this situation well and has made a feature available on its site, through which merchants can automatically authorize the company to handle the most common sales tax calculations, though tax laws may change at any given time. By making the sales tax calculation for the sales merchant, his work is made easier, and all he just has to do is make the deposit where needed. Shopify would never make sales tax transfers for any individual merchant. A better option to making sales tax transfers may be registering the business within the state or federal level. Shopify only recognized that making sales tax calculations and handling business simultaneously can be tasking for the merchant, and it thought it best to provide the automatic calculation option to only help ease the workload on the merchant’s side. It is only up to the merchant to complete what has been started. And it needs to be reemphasized again that Shopify would never by itself begin to calculate any merchant’s sales tax, except the merchant permits it to. Merchants should be sure to frequently check in on a local tax authority or hire a tax accountant who would help with the tax remittance issues if it poses a serious challenge to them. This is to ensure that the merchant’s customers are not charged under or above what they are supposed to be charged, as well as it also ensures that sales taxes are remitted as at when they are supposed to be.

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How can I set up Shopify to help collect sales tax?

Making this setup really can be a challenge and can prove extremely difficult sometimes. However, this can be done. This can be achieved following procedural steps.

  1. Of course, the first step begins with getting registered to the Shopify market room. To get registered, visit the company’s website and follow the laid down guidelines.
  2. The user has to notify the Shopify website, which states it should collect sales tax from customers. The user needs to click on “Settings” on the Shopify home page to do that. A list of options will appear, then click “Taxes.” Locate the United States and click on the “Set up” or “Edit” button (only if a setup hasn’t been initiated in the first place). Then, enter the state from which tax shall be remitted. Sales tax will be required here instead of zip code.
  3. Next is to set up the tax shipping options by going to “Settings” then clicking on “Taxes.” Down, almost beneath the page, click on the “Tax calculations” section. Then, click on “Charge tax on shipping rates.”
  4. Shopify should then be informed which products may sales tax would be required of. To do this, click on “Products” and select the number of products that should be taxed.

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