Shopify Seller Sales Tax Services

Managing sales tax compliance as a Shopify seller can quickly become overwhelming. With ever-changing tax laws, varying state requirements, and complex nexus rules, ensuring compliance while running an online store is no easy task. At eBiz Accounting, we specialize in Shopify sales tax services, helping eCommerce businesses tackle these challenges head-on. Contact a skilled ecommerce business accountant here at eBiz Accounting today.

Understanding Sales Tax for Shopify Sellers

Sales tax is a consumption tax imposed by state and local governments on goods and services sold within their jurisdictions. As an online seller using Shopify, your responsibility for collecting and remitting sales tax depends on where you have sales tax nexus—a connection to a state that requires you to comply with its tax laws. The most common factors that create nexus include:

• Physical presence (e.g., an office, warehouse, or employees in a state)
• Economic nexus (exceeding a certain sales threshold in a state, typically $100,000 or 200 transactions)
• Affiliate nexus (having affiliates or third-party sellers operating in a state)
• Click-through nexus (state laws triggered when referrals generate sales)
• Marketplace facilitator laws (some states require Shopify and other platforms to collect tax on behalf of sellers)

Failing to properly register and collect sales tax where required can lead to hefty penalties, audits, and unnecessary financial risk.

How eBiz Accounting Helps Shopify Sellers with Sales Tax Compliance

At eBiz Accounting, we offer comprehensive sales tax services tailored specifically for Shopify store owners. Our team of experienced CPAs ensures that your business remains compliant while minimizing your tax liability.

• Sales Tax Nexus Analysis: Many Shopify sellers don’t realize they have sales tax obligations in multiple states. We conduct a detailed nexus study, reviewing your sales data, transaction history, and business operations to determine where you need to register and collect sales tax.
• Sales Tax Registration: Once we identify the states where you have tax obligations, we handle the entire registration process for you. Each state has different rules, and our team ensures accurate and timely registrations, avoiding unnecessary delays or penalties.
• Automated Sales Tax Collection Setup in Shopify: Shopify provides tools for sales tax collection, but configuring them correctly is crucial. We ensure that:
  • Your tax settings are properly enabled to collect tax in the right states.
  • Product taxability rules are correctly applied to different types of goods.
  • You are tracking marketplace facilitator tax collection, so you don’t collect tax in states where Shopify does it for you.
• Ongoing Sales Tax Filings & Remittance: Collecting sales tax is just the beginning—you also have to file and remit it to the appropriate tax authorities. eBiz Accounting provides full-service tax filing, ensuring that your taxes are submitted accurately and on time. We:
  • Prepare and file monthly, quarterly, or annual tax returns, depending on state requirements.
  • Remit collected taxes to the correct jurisdictions.
  • Reconcile Shopify reports with state filings to avoid discrepancies.
• Audit Support & Compliance Reviews: If you receive a sales tax audit notice, our team provides expert representation and assistance. We also conduct periodic compliance reviews to ensure that your Shopify store remains up-to-date with changing tax laws.

Common Shopify Sales Tax Mistakes & How to Avoid Them

Many Shopify sellers make costly mistakes when handling sales tax. Here are some of the most common pitfalls—and how eBiz Accounting helps you avoid them:

• Failing to register in states where they have nexus: We conduct a thorough nexus study to ensure compliance.
• Incorrectly setting up Shopify’s tax collection system: Our team configures your settings to match each state’s laws.
• Assuming Shopify automatically handles all sales tax: While Shopify collects tax in some states, many still require seller action. We clarify your responsibilities.
• Missing filing deadlines: Our automated tracking system ensures that your filings are submitted on time, avoiding penalties.
• Not remitting use tax on purchases: We help you track and report use tax where applicable.

Contact eBiz Accounting Today

Sales tax compliance shouldn’t be a burden. Let us do the accounting heavy lifting so you can focus on running and scaling your Shopify store. Contact us today for a consultation, and ensure that your sales tax obligations are handled accurately, efficiently, and stress-free.