2020 Shopify sales tax setup for stress-free compliance | Walk-through guide

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WE'VE RECENTLY UPDATED THIS VIDEO FOR THE NEW SHOPIFY UI.
CLICK HERE TO WATCH IT: • UPDATED Shopify Sales ...
How to setup Shopify sales tax for stress-free compliance. This video takes you through how to setup Shopify sales tax settings.
Shopify sales tax compliance can be complicated and stressful, but we hope this video gets you on the right track. It includes screenshots and explanations of all the steps needed to setup your Shopify store.
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Опубликовано:

11 сен 2024

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Комментарии : 576

@CHENOTV 3 года назад

youtubers make drop shipping sound so easy but they leave out this part

@LedgerGurus 3 года назад

Yeah, sales tax is no joke. It makes everything more complicated.

@CHENOTV 3 года назад

@@LedgerGurus do i have to have a sales tax number to collect tax?

@LedgerGurus 3 года назад

@@CHENOTV You do have to register with the state before you can collect sales tax in it. It's illegal to collect if you haven't done that yet. For more information on sales tax, we strongly recommend you download our "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business." ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/ Also, we at LedgerGurus are in the process of creating a course for online sellers to teach them how to register, file, and remit sales tax. We want to make sure that we are providing exactly what online sellers need and are looking for. Would you be interested in giving us a few minutes of your time so we can ask you some questions? If so, please click this link to schedule a time - calendly.com/kelleybirrell. Thank you!

@CHENOTV 3 года назад

@@LedgerGurus so at the end of the year I will be responsible for that? 😞

@LedgerGurus 3 года назад

@@CHENOTV You are responsible after you hit nexus in those states. That's why it's so important to be watching this.

@nigelgroce4740 3 года назад

That was succinct and super informative. If every RU-vid video contained that much value, it would be a different world. Great job!

@DreamFirms 3 года назад

Great tips to those who want to have a successful e-commerce business.

@incognitochallenger7099 4 года назад

taxes are so confusing.

@andreaisabel1995 3 года назад

I seriously hate it sm.

@andreaisabel1995 3 года назад

Not even the actual paying of taxes but the stupid states website from 1995

@lilianaramos5467 3 года назад

Thank you so much for creating this video - it's very informative! I am trying to learn more about tax legalities about e-commerce. My questions are: How do you know which states are not tax shipping? How do you know which products are taxable? Also, as a future Shopify/Online seller, How do I pay taxes? How do I register with the IRS? How often do I have to pay taxes, quarterly/yearly? Besides keeping track of income earned and expenses, anything else I should be keeping track of? What are tax deductibles and tax breaks? Is there a YT video on how to file taxes in the US for sellers in the e-commerce world you would recommend? Again, THANK YOU SO MUCH FOR CREATING THIS TYPE OF CONTENT FOR US NEWBIES.

@LedgerGurus 3 года назад

Liliana, great questions! To fully answer all of these questions would require additional information from your end. You can schedule a consultation with one of our sales tax experts here: calendly.com/ledgergurus-sales-tax. Best of luck!

@AdamTaubVideo 3 года назад

Great video, very clear and to the point! Thanks!

@aryanasmith4426 Год назад

Found your post interesting to watch. I can't wait to see your new videos soon. Good Luck with the upcoming update. This RU-vid channel is really very informative and effective.

@LedgerGurus Год назад

Thanks!

@SandyLovingU 3 года назад

Thank you! Your instructions are better than the tutorial video Shopify supplied on their site.

@LedgerGurus 3 года назад

Yay! I'm so glad you found it so helpful. :)

@samuelnemetsky4088 3 года назад

Video starts around 3:00 minutes.

@Team8LA Год назад

I used to sell on eBay tin the earlier time, sometimes I sold items to foreign countries and had no clue how to collect sales tax or how to report it. My hobby biz die all because I had no business knowledge. Thank you so much for the info, I will do well next time.

@LedgerGurus Год назад

Sorry to hear it went badly last time. Good luck next time. Hopefully our videos will help things go better.

@minzyminz9987 3 года назад

thank you so much, will be launching next month and still gaining knowledge.

@LedgerGurus 3 года назад

You're welcome. Good luck with your launch.

@jadamccubbin3474 3 года назад

I’m confused. I am dropshipping and only have a tax ID for the state I am in. Do I still have to go through and manually set up taxes for every state considering that my customers might order from other states? Or do I just leave the taxes to collect from the state I’m in?

@LedgerGurus 3 года назад

NO! Do NOT set up taxes in every state. It is illegal to collect taxes in a state if you haven't registered there yet. That is a can of worms you DO NOT want to open. You don't need to worry about sales tax in a state unless you have nexus there, either. That can be physical nexus, because you have a physical presence there (inventory, employees, etc.) or economic nexus because you have passed the economic or sales volume threshold in that state. To learn more about nexus, thresholds, and how all this works, download our PDF "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/ Also, we have a sales tax course where you can learn all the ins and outs of sales tax, so you can be sure you're doing it right. Click here for more info - ledgergurus.com/resources/sales-tax-course-updates/.

@KH-to7pc 3 года назад

Thank you sooo sooo much I want to open an online business but I was scared because I had no idea about how to pay tax that’s what stop me from trying !!!

@LedgerGurus 3 года назад

Don't let that stop you!! We have so many ways to help and guide you through this process. It doesn't need to scare you anymore. When you're just starting out, the only state you need to worry about registering in is your home state. When you make sales there, you'll need to charge sales tax and remit it to the state. You don't need to worry about charging sales tax in other states until you start approaching the economic thresholds. For a complete and updated list of those thresholds, along with valuable information about doing your sales tax properly, download our PDF "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business." You can find it here - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/ As you get further along in your business, sales tax will get more complicated, but you don't need to be afraid of it. We have several levels of help for ecommerce businesses - DIY (How to Do-It-Yourself -> an email crash course with links to articles and videos like this one), DIWY (Do-It-WITH-You -> a sales tax course where we teach you exactly what you need to do and give you access to experts who can answer all your questions), and DIFY (Do-It-FOR-You -> for when you are ready to outsource). We are happy to help you! Our goal is to help as many ecommerce businesses be successful as we can.

@12345678910979 3 года назад

Question! 1. Does Shopify have a system that notifies you when you’ve reached nexus in a state to start applying taxes? 2. Before applying taxes for nexus, should I apply for a sales tax permit from that state first? 3. Once I reach nexus (ex: 100,000$ or 200 transactions) and start applying tax for a nexus state, do I report the taxes quarterly or annually? 4. Since I didn’t start collecting nexus tax until I reached the 100,000$ or 200 transaction mark, how do I know how much tax to pay on the previous 100,000 or 200 transactions? And which quarter should I report it in? 5. Does Shopify have a tax report for summary for each state or states you’ve reached nexus? Please let me know. These answers would be very helpful.

@LedgerGurus 3 года назад

1. No. You can watch our other video on how to download and understand your Shopify sales tax report to determine nexus: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-RWZHnD0AEwo.html 2. Yes. Legally you need a sales tax permit before collecting sales tax. 3. This depends on the state and how much sales tax you are collected. Generally, the more sales tax you collect, the more often you are required to file. 4. The date in which you meet the threshold for the past 12 months is when you are legally required to start collecting. If you didn't collect or remit for a period of time, you can always file and remit back taxes. 5. Watch our new video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-RWZHnD0AEwo.html

@realtomchou 3 года назад

THIS IS SOOO HELPFUL! THANK YOU FOR SHARING!!

@LedgerGurus 3 года назад

Glad it was helpful!

@spacekadet12 3 года назад

This helped so much!!

@LedgerGurus 3 года назад

Glad you found this helpful!

@barbniehaus4609 3 года назад

That was clear as mud

@LedgerGurus 3 года назад

LOL! Thank you for the feedback. :) What questions do you have that we can help you with?

@Robbyrevz 3 года назад

Really helped! Thank you!

@LedgerGurus 3 года назад

You're welcome :)

@BrianAndrewStephens Год назад

This is a great video but collecting sales tax is a beast. It seems as though our country doesn't want us to make money because they make it so confusing. It's so overwhelming that it makes me just not want to do it. Sales tax really sucks. Thank you for the video though. Wish I could hire you to do the work for me. Haha.

@LedgerGurus Год назад

We agree that it’s very burdensome! Follow our channel, we have lots of resources and you can always schedule a 30 minute consulting call or ask your questions here!

@19moon_goddess79 3 года назад

Do you need to add each state? If so, I’m only able to add “United States”. I’ve sold items and my reports don’t show what the tax should be. I’m so confused about this. Do I need to calculate myself?

@LedgerGurus 3 года назад

You need to add each state where you have nexus. For more on nexus (where you have a liability to register, collect, and file/remit sales tax), you can watch this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html And just as a reminder, you'll need to register with the states before you add the states. It's illegal to collect sales tax from customers without have a sales tax permit in a state.

@jonitacaldwell920 3 года назад

@@LedgerGurus okay so basically i only collect taxes from orders in the same state as my sales permit?

@LedgerGurus 3 года назад

@@jonitacaldwell920 yes, you need a sales tax permit in a state before collecting from orders in that state. You are liable to collect sales tax in states where you have a physical presence or significant sales activity (if a state has economic nexus laws). Here's another video to help: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html

@ItsKimestry 3 года назад

@@LedgerGurus So I have a permit in New York. So does this mean I only collect taxes from customers that are from NY? Cuz I had a customer the other day from Nevada.

@LedgerGurus 3 года назад

@@ItsKimestry That is correct...for orders shipped to NYC. You don't need to collect in other states until you have nexus there. Here's another video to help: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html

@btccoins5514 4 года назад

In order for the seller to collect sale tax, person NEEDS to have sale tax certificate/permit from your state. You are not allow to collect sale tax without any approval from your state, that is illegal. The reason why I know this is that I'm trying to get sale tax exemption and I learned that I needed sale tax permit from my state

@LedgerGurus 4 года назад

Yes, that is correct. Sellers should not be collecting sales tax in a state unless they have a permit to do so.

@tankjackson1171 3 года назад

do you have to?

@mindjabusiness6695 2 года назад

Thank you 😊

@LedgerGurus 2 года назад

Of course! Glad it helped!

@defionsllc413 2 года назад

Is there a 2022 Version of this video? Awesome lesson by the way

@LedgerGurus 2 года назад

Yes we are working on one!

@aranw7748 3 года назад

Hi there, thanks for doing this video. Its a nightmare to have to set up each state and jurisdiction within states to collect tax in those destination sourced states, is there a service out there that does this? maybe integrates with shopify through an app and streamlines this maddening process?! Thanks :)

@LedgerGurus 3 года назад

Hi Aran, you can view our review of sales tax apps video here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1L7s6llWlRo.html We also recommend that as you start to obtain nexus in multiple states that you get sales tax experts involved and handling your sales channels and sales tax apps. You can contact us here if you are interested in our sales tax services: ledgergurus.com/services/sales-tax/

@Kheefkode44 3 года назад

I wish I could like this video more than once. Great Explanation 👌🏽🔥

@LedgerGurus 3 года назад

Thank you! We really appreciate that. :)

@GQ-jv9uw 2 года назад

Great Video thanks a Ton

@LedgerGurus 2 года назад

Glad you found it helpful!

@gemmint4611 3 года назад

Hello great video! Do you setup the taxes to collect based on where you are fulfilling your orders? Or do you setup taxes for where your customers are? Is there a LedgerGuru price plan to provide support ?

@LedgerGurus 3 года назад

You set up taxes for for where your customers are. We are in the process of updating our website with our price plan. In the meantime, you can check out our services page - ledgergurus.com/services/sales-tax/

@shannonwymore4864 Год назад

@@LedgerGurus does that require getting a tax license in every state?

@LedgerGurus Год назад

@@shannonwymore4864 hi! You only need to register for a sales tax license in the states you have nexus (physical and economic).

@iamomarii 3 года назад

Thank you 🙏🏾 ❤️

@Sashcomm 3 года назад

Great video! Very helpful! I have a question though, if I am based in the state of NY and ship to every other state but my drop shipping store doesn’t make more than $1M a year or 200 transactions in one state then I don’t need to collect taxes in that state, correct? And then, in step 1 of this video I would just have to enter the state of NY because that’s where I am based and where I should collect taxes for now, I wouldn’t need to add all the other states, did I understand that right?

@LedgerGurus 3 года назад

The thresholds are different for every state. And none of them are $1M. Most are closer to $100,000. We have a list of all the states' thresholds in the appendix of our "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" PDF. You can get that here - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/ Also, you definitely need to pay sales tax in your home state / state your business is registered in, but then you only need to pay taxes in other states when you meet the thresholds. Be aware that Florida, Missouri, and Kansas can be tricky. We're getting ready to launch a course to teach business owners everything they need to know about sales tax. To learn more, go to: ledgergurus.com/resources/sales-tax-course-updates/

@ahmaddaboul2681 3 года назад

Thanks for the Good video,

@miaknox4060 3 года назад

I'm a new online retailer based in OR, a sales tax free state (origin NEXUS?) Business address is a UPS store mailbox. I want to sell online in U.S. and the world. So, I've added all the U.S. states in Shopify. Now since I'm selling to people in U.S.(destination NEXUS?), I then have to register with each state to get a sales tax ID (if they require/) correct? I'll override tax on shipping settings based on per state info in Shopify. How does the int'l portion work? AMAZING VIDEO! THANKS FOR THE CLEAR INFO.

@LedgerGurus 3 года назад

Hi Mia, since you don't have physical presence or economic nexus in other states, you don't need to register, collect, and remit/file for sales tax. The most common ways that will create nexus states outside your home state is if you store inventory anywhere else, hire employees in other states, or if you start to meet economic nexus thresholds in other states ($100K in annual revenue or 200 in annual transactions are the lowest thresholds). You can view this video for more on sales tax nexus: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html

@johnnydepp9999 3 года назад

Great Video, Very Informative. Couple of Questions. 1) If i have a LLC in Wyoming where i have registred for Sales tax and my Dropshipping Supplier is based in Florida then do i need to mention both Locations in Shopify? 2) When i mention both, it asks me to mention my Sales Tax Id in Florida as well, which i dont have as i have it only for Wyoming. Do i need to collect Sales Tax in Florida as well even if i dont have a nexus or i can leave it blank?

@LedgerGurus 3 года назад

You don't need to mention FL. Your dropshipper's inventory doesn't create nexus for you, which means you don't need to collect sales tax in FL right now.

@thebunnygirl 2 года назад

@@LedgerGurus Does this apply for other states? I have an LLC in TX but because I travel for work in California, I ship a lot of my packages from there. I don't have a warehouse and work out of wherever I am staying at the time.

@andreaferkingstad6265 4 года назад

What about if you sell a product through a print on demand vendor app like Printful or Printly? Also, how to you remit the sales tax to the states? Do you use a service? app? software?

@LedgerGurus 4 года назад

You still need to determine where you have nexus due to physical presence (where your business is based) and economic nexus and then still setup sales tax settings Shopify. Because vendor apps like Printful are not marketplace facilitators, they have no responsibility to collect and remit the sales tax. As far as remitting, each state have a portal where you can e-file and pay sales tax. So you just create an online account with each of the states you collect sales tax in and file and remit online. There are also apps that can help with this. You can watch our review on few of those apps here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1L7s6llWlRo.html

@TadiSora 2 года назад

Thank you so much for this video! Definitely subscribed, you have amazing information. Quick question though, I am based in the US but I just started getting a lot of traction on my Shopify store .I wanna make sure I'm doing the right thing you know haha so both fullfilment and purchases are done in South Africa. I am just the owner. Do I charge taxes based on south african tax guidelines or based on USA guidelines

@LedgerGurus 2 года назад

It depends on where your customers are. If you are selling to US customers, then I would look at US guidelines.

@SthephanieMarieMiranda 2 года назад

Thank you for this video! So helpful Question- I have an eCommerce Shopify website. I'm based in Ohio. Do I only collect tax in the state of OH or all states? Please help! :(

@LedgerGurus 2 года назад

Only in OH as of now, until you pass economic nexus threshold in other states. I have a new-ish video on “nexus” that might be helpful!

@KH-to7pc 3 года назад

Thank you so much !!!! Your the best !!!! 🌺🌺

@LedgerGurus 3 года назад

You're very welcome!

@giuliaavila. 2 года назад

Thank you so much for your video! I have a question though. If my small e-commerce business (sole proprietorship) is registered in Florida but I live in Oahu Hawaii 6 MONTHS out of the year, do I have to register my business there too in order to do sales (shipping) from there too? Thanks xx

@LedgerGurus 2 года назад

Sorry for the late reply but yes you need to register in Hawaii as well.

@nickviewss Год назад

If you have printify as a a 3rd party for Shopify do you have to reach out for all those warehouse locations if you aren’t handling it?

@LedgerGurus Год назад

To make sure they are collecting sales tax? Sorry I’m not fully understanding your question.

@natalie.leclerc 3 года назад

I'm still very confused with the tax settings. My partner and I are in Canada, dropshipping from Asia and selling only to Canada & US. Do we still need to set up sales tax?

@LedgerGurus 3 года назад

From what you have explained, you would only need to register and collect in states where you have a high sales volume. Once you reach $100K in annual sales or 200 annual transactions in any state, you should check their economic nexus threshold. If you meet their threshold, then you are liable to register, collect, and remit sales tax for sales in that state.

@shaynatheecreator 2 года назад

I'm in Canada too and planning to only sell in Canada & US and not sure if I need sales tax for Canada and since we would be selling in the US are we required to file US taxes as well I'm hoping you respond since it's been a year since you left your comment! I hope you and your partner have been having major success!!

@brianmatthews2953 2 года назад

Awesome Video, One thing I am curious about, is does Shopify allow for export of sales for my accountant for each quarter so he can do my taxes or is there a 3rd party app I need or how does that work?

@LedgerGurus 2 года назад

Yes you can definitely download it yourself. Go to orders - export - custom date and select the date you need for reporting and a zip file will be emailed to your email account linked with your store.

@haloHOF 2 года назад

So I am in California should I charge taxes from the beginning or should I start collecting after tax nexus?

@LedgerGurus 2 года назад

You should charge tax from customers in California from the beginning.

@fifi536 2 года назад

Thank you so much for this awesome and brief video, yet it covered so much. I am based in Botswana, however I intend to sell to the US market. I am using Modalyst for my supplier services. How do I apply for a tax permit being a non citizen and non US based individual? I have issues again with my location settings, it has my home country address by default how do i go about this one?

@LedgerGurus 2 года назад

We just helped some international businesses get sales tax permits in the US. I’m happy to make a video about it! I’m general, you will need an FEIN first, then US bank account and US mailing address. Let us know if you would like us to help you with this process!

@ceciwong3699 2 года назад

Thks for the info. We sell in Shopify in Delaware where there is no sales tax, so we don't need to set up sales tax in Shopify?

@LedgerGurus 2 года назад

Correct! Until you pass economic nexus in other states :)

@mariefielden1984 3 года назад

When I tell shopify to start collecting sales tax in a state does it automatically know the rates for each county or do I have to enter all of them? When it is time to remit sales tax each month/quarter does shopify have a good report for getting the information needed for each state?

@12345678910979 3 года назад

I would love for the 2nd question to be answered

@LedgerGurus 3 года назад

We put out a blog post recently on this topic - ledgergurus.com/shopify-sales-tax-report-how-to-find-understand-it/

@rushawnbeecher4069 2 года назад

Thanks for your info, if my products are coming from china straight to the customers and I don't have a warehouse, how do I handle taxes in that situation

@LedgerGurus 2 года назад

You need to register and collect with the state where you are located and monitor economic nexus going forward.

@suzil7687 2 года назад

I'm just getting started on this journey, so maybe you will answer this, but Shopify is telling me which states I may need to collect tax from based on orders. I've integrated my Amazon store into Shopify. So it's seeing Amazon orders as well as Shopify orders. Amazon pays these taxes for me. I don't want Shopify to double collect but I understand about economic nexus. So my question is: if I set up a state to collect taxes based on Shopify telling me I need to, then it will only collect taxes on Shopify orders, correct?

@LedgerGurus 2 года назад

Yes it'll only be for orders on Shopify. With economic nexus, most states look at "gross sales" meaning both shopify sales and amazon (marketplace facilitator)'s sales.

@artshelbacca 2 года назад

HI there. I live in Nevada and use Printify with my Shopify store. For all of the sales I have, Printify adds that customer’s tax to my costs so it seems that they’re taking care of it for me. But I’m not sure how to set up Shopify sales tax so that my customers have that sales tax added to their purchase. I have my sales tax collection started in Nevada. How do I start collecting taxes in all other states?

@LedgerGurus 2 года назад

Printify is charging you sales tax because they have nexus in those states. You should only charge sales tax where your have nexus - physical presence (NV) and any other states you pass economic nexus. Before you reach that you can not legally collect sales tax. You can give resale certificate to printify so they stop charging you sales tax though.

@PrettyKonfidence 3 года назад

I have my tax ID in the state of NC. When setting up to collect taxes on each US purchase from my store, do I have to go in and add each state even though I don't have a tax ID in those states?

@LedgerGurus 3 года назад

Hi Katherine. You should only add the tax ID and collect sales tax for states where you have sales tax nexus and have registered for a sales tax permit. Here's another video in helping you understand sales tax nexus: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html

@b_say2678 2 года назад

So if I have an online store base in California my understanding is that I have to collected sales tax on all states that requires tax? Do I manually input these states one by one in the tax section? And if I sell products internationally?

@LedgerGurus 2 года назад

Hi! Since you are based in California, you should register in CA and then turn on tax setting on Shopify and collect and remit sales tax collected in CA. For the other states, you don't need to register or collect tax unless you have nexus in those states, same goes internationally.

@damiankawalec4868 3 года назад

Hello I see you are very helpful here so maybe you will be able to answer my question. So I have registered company in EU contry and as far I know when I'm selling products to EU countries I do have collect VAT but now I'm in process of sending my inventory to USA fulfilment center and I would like to ask you if I have to set up collecting taxes for USA customers or do not collecting taxes because company is in EU and fulfillment center in USA

@LedgerGurus 3 года назад

Hi Damian, any state that your inventory is stored in the US, you are liable to register, collect, and remit sales tax for sales to customers in those states. Another common way that will require you to worry about sales tax is if you have large economic activity in a particular state. If you approach $100K in annual sales or 200 transactions in any state, you will want to check their "economic nexus" laws. For more help you can download our PDF that will take you through more specifics: ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/

@bokor187 Год назад

Hi mate, great vid. Qq: i am located in Germany - that is the address of my Shopify store - but I only sell to the US. I will pay German income tax but since i don’t have a US address i will not pay tax in the US. Therefore, i should not change tax in my store. Is that correct?

@LedgerGurus Год назад

Yes that’s correct, until you pass economic nexus threshold in a state :)

@ellachan5996 3 года назад

Great video,it's very helpful. I am a non us citizen living outside of us, but I have a single member LLC registered in WY. I do not have any office or warehouse in the US. Do you think I have nexus in Wyoming state and should collect sales tax for my dropshipping order to that state? Thanks!

@LedgerGurus 3 года назад

If you're registered in Wyoming, you do need to collect and remit sales tax there.

@iva6433 2 года назад

Great video. How about products that the tax ability varies from state to state. For example supplement is taxable in CA but exempt in IL. Will Shopify recognize this or override needs to be done. Thank you!!

@LedgerGurus 2 года назад

You will need to add the override on a state by state basis. Let me know if that makes sense, or we are happy to have a call with you to walk you through the process.

@sb2ok 2 года назад

Hi! I loved your great explanation of these functions in Shopify. I loved it. I have one question. I hope you can help. We use Shopify to sell beekeeping equipment all over the US. Many of our customers have an agricultural tax exemption so they do not pay sales tax. That is easy to do because we can uncheck the charge sales tax box in that customers profile. However some of our products do not qualify for that exemption. Do you know how I can exempt a customer from sales tax BUT also exempt a product from that sales tax exemption? Thank you for any ideas!!!

@LedgerGurus 2 года назад

Hi! You will need to create a collection of the exempt product and then add an override for that collection and select the states you want to apply it to.

@BrandyReneePhotographyTV 3 года назад

I only sale digital products and no physical store. Do I still charge taxes

@LedgerGurus 3 года назад

Yes, you are still responsible for taxes on those products. There are a few sales tax exemptions, and you can watch this video to learn more about them - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-DlrTfzKoDQU.html.

@aspire081989 4 года назад

the problem is that , every state has its own tax laws which means different sales taxes so how would you deal with taxes at all these states? do you need to hire a cpa at each state?? , even though this sound insane

@LedgerGurus 4 года назад

Yes, it's a huge pain. Usually when businesses start out they only have nexus in 1 state (unless they are based in a state without sales tax), so they just need to worry about registering, collecting, and remitting in that state. But as businesses grow, that's when it gets hairy due to economic nexus and other sales tax laws. Sales tax apps and outsourcing to sales tax experts is what we suggest. We have an entire sales tax team that handles the registering, collecting, and remitting of sales tax for our clients. Feel free to reach out if you have more specific questions or are in need of help: ledgergurus.com/services/sales-tax/

@christiine316 4 года назад

LedgerGurus what if you are just starting out and not getting much sales? I filed for a reseller license with my state not knowing what i was doing and im not even making sales yet but being asked to submit info each month? I only have a shopify and havnt even launched yet. What should i do?

@scentualobsessions 2 года назад

So how do you pay sales tax and how often do you have to pay it. I’m switching over from Big Cartel to Shopify and right now big cartel remits all my sales taxes

@LedgerGurus 2 года назад

The filing frequency is assigned by each state and it’s depends on how much sale you have into that state. You can manually file the return or use a software :)

@NatalieKhorsandianDIY 3 года назад

Hi! I'm just about to launch my Shopify online store. I make and sell products in Canada. I would like to be able to sell and send my products to USA. I'm very confused about how should I do that. Do I just ship my products to USA or I need to charge them tax and duties? Thank you in advance for your help.

@LedgerGurus 3 года назад

When it comes to sales tax, you would need to register, collect, and remit sales tax in any states where you have "nexus". Since you live and store product outside the US, this would likely be when you meet "economic nexus" thresholds. Basically, when you approach $100K in annual revenue or 200 transactions in any state, you'd want to check that state's economic nexus thresholds. If you meet their economic thresholds, then you are liable to collect and remit sales tax. Here's another video to help: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html

@doraortiz8920 3 года назад

How would we charge taxes for the rest of the world if we are located in Texas ... we plan on doing world wide shipping

@LedgerGurus 3 года назад

That's a good question. We focus on US taxes, so we're not qualified to give worldwide tax advice. However, there are probably other RU-vidrs who do cover the topic. Good luck on your new business!

@theviarflyer Год назад

As a new seller how does this all work with the Nexus rules? I know you don’t pay tax on the first X number of sales or $ amounts to each state, so how do you work with that?

@LedgerGurus Год назад

Simply don’t add those states in your setting until you pass the economic nexus threshold in each state.

@gmc.muneca 3 года назад

I just recently opened my online boutique and I did 2 sales and did not charge sales tax and I’m changing that will this affect me ?

@LedgerGurus 3 года назад

When you're just starting out, the only state you need to worry about registering in is your home state. When you make sales there, you'll need to charge sales tax and remit it to the state. You don't need to worry about charging sales tax in other states until you start approaching the economic thresholds. For a complete and updated list of those thresholds, along with valuable information about doing your sales tax properly, download our PDF "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business." You can find it here - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/ As you get further along in your business, sales tax will get more complicated, but you don't need to be afraid of it. We have several levels of help for ecommerce businesses - DIY (How to Do-It-Yourself -> an email crash course with links to articles and videos like this one), DIWY (Do-It-WITH-You -> a sales tax course where we teach you exactly what you need to do and give you access to experts who can answer all your questions), and DIFY (Do-It-FOR-You -> for when you are ready to outsource). We are happy to help you because our goal is to help as many ecommerce businesses be successful as we can.

@Thanossi 2 года назад

i am totally confused 😔, in my case i live in Germany and i sell to USA, Canada, UK my settings right now are : all prices include tax, so is this correct or no? that means that consumers pay extra money when they receive the product?? please help 🙏🙏🙏 thank you!

@LedgerGurus 2 года назад

Hi! I'm more than happy to help! In the US, states require sales tax to be separately stated instead of being included in the selling price like Europe and UK. I would do separate setting for each country if possible.

@Ilovetobmx22 2 года назад

once taxes are collected where do they go and how do i collect them to use to file taxes with my state?

@LedgerGurus 2 года назад

They will be paid out to you with your other Shopify income. You can use the Shopify orders report to see how much to remit to each state. We also have a video on understanding Shopify report for sales tax purposes, it should be helpful to check that one out!

@benjaminkell3726 Год назад

You would have to send the money to the states yourself right or the website handles that?

@LedgerGurus Год назад

You will need to send the money to the states either by check or payment online.

@tinabrowning5502 2 года назад

I am confused about one thing. I was under the impression that you did not have to get sales permits in other states until you reached Nexus. Is that not true?

@LedgerGurus 2 года назад

That is 100% correct. Unless you need to voluntarily register to get a resale certificate in certain states.

@BestMusicHits 4 года назад

Sale tax ID is the same as a EIN? I see options to add states & it says" your unique sale tax for alabama" Does this mean I'll need an ein for each state?

@LedgerGurus 4 года назад

No, your sales tax ID is not necessarily the same as a EIN. After you register for a sales tax permit with a state, the state will assign you a unique sales tax ID. Some states like North Carolina use your FEIN as your sales tax ID, but most states give you a completely different number. This is why you need to register in every state you are collecting and make sure to keep documentation on the sales tax ID, access code, PIN, letter ID etc.

@jennifervanbeek7224 4 года назад

LedgerGurus so if I’m selling online to all 50 states, do I need to get a sales tax permit for every single state? I have an online boutique with Shopify. TIA!

@LedgerGurus 4 года назад

@@jennifervanbeek7224 you only need a sales tax permit in states where you have nexus and are therefore collecting and remitting sales tax from customers in that start. To start, you'll only need to worry about the state where your business based. For other states, the most common forms of nexus would be physical (if you have employees or hold inventory in another state) or economic nexus (if you have a large amount of sales in another state). Each state has a differing threshold for economic nexus. If you are approaching $100K in annual sales or 200 transactions in any state, you should check their economic nexus law. Once you have economic nexus or physical nexus in any other states, then it's time to register, collect, and remit sales tax for customers in those states.

@raymondcastillo2131 2 года назад

Hi, how do I add the NYS Special Tax Rule override to Shopify store? Step bt Step. TY!!!

@LedgerGurus 2 года назад

Hi! It depends on what you are doing the override for. Generally, you need to add a collection first, then manually add the items, then add the override to assign the collection specifically to a state at a certain rate. If you need more help, feel free to schedule a consultation here: calendly.com/ledgergurus-sales-tax/1-hour-sales-tax-consultation?month=2021-12

@BlockchainShango 3 года назад

Thank you, very much.

@LedgerGurus 3 года назад

You are very welcome!

@tonys490 3 года назад

Hello , we are Uk based online store .. if we sell to an american /canadian customer .. is it mandatory to add (Americans sales and goods tax) to the price of item and charge them at sale on our website ? or can I make the customer aware that they may incur additional charges on receipt of item in USA?Please help thanks

@LedgerGurus 3 года назад

Initially, you only need to register and charge/pay sales tax in the state in which your business is registered. After that you need to pay attention to where you have nexus - physical presence or passing economic thresholds. To get a better understanding of this, I encourage you to download our PDF "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business." - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/.

@jonitacaldwell920 3 года назад

so i only collect taxes on orders that are made in the same state?

@LedgerGurus 3 года назад

You only collect sales tax for customers in states where you have sales tax "nexus". This would be where you have a physical presence (location of employees, business, stored inventory, etc.) or in states where you have a lot of sales or transactions. Here's another video to help you with understanding sales tax "nexus": ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html

@pitlagios2169 Год назад

Hi I live in Greece where we have a tax called income tax that is different to the products' tax do you know if my income tax is automatically paid by shopify keeping a small amount of my income except for the products tax

@LedgerGurus Год назад

Shopify doesn’t withhold revenue for income tax purposes.

@andreadileo1790 2 года назад

I am a sole proprietor, do I need a resale ID number or can I use my SSN? If I need a resale ID number where can I get that and does it cost money.

@LedgerGurus 2 года назад

You can use your SSN!

@leonardonunez7527 3 года назад

I am having issues with figuring out how to get my reports correctly to file my taxes, my tax girl is asking me for only my New York customers report however Shopify gives me the entire repost for all my customers is there a way to figure this out? I really need help

@LedgerGurus 3 года назад

Hi Leonardo, you can download the order report and filter “ship to state” for New York in Excel.

@HERETOABSORB 3 года назад

Such a great video thank you! 👍 I've searched through comments, but can't find my answers, sorry if repeated.... 1. I'm in the UK, hand making products and shipping to the US (New business, making around 10k a year so far).....do I charge tax on my hand made products? 2. In the same online shop, I sell print on demand products, using a fulfillment centre based in the US (shipping from various warehouses)...with my 'current' low income, do I need to charge tax on these products right now? I also have an Etsy shop and they have charged tax on a few of my orders, which they said they 'deal with', but it got me thinking about my Shopify store too. Thanks in advance 👍

@LedgerGurus 3 года назад

As an overarching answer before I get into specifics, I highly encourage you to download our PDF "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business" - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/. It should help answer most of your questions about sales tax. That said, let's dive into your questions. Where you pay sales tax is based in large part on nexus, both physical and economic. It's unlikely that you'll need to pay yet on economic nexus since your sales are still quite low. That said, if you cross those thresholds, you will have charge sales tax, even on your handmade items. Etsy is a marketplace facilitator, which is why they are charging sales tax. You do need to watch your sales across all your sales channels, but you're still too small for most economic thresholds yet (watch out for Kansas sales, though. You DO need to charge sales tax on all sales in Kansas.) Are you dropshipping from the fulfillment center, or do you own the inventory? If you're dropshipping, you don't need to worry about sales tax yet. If you own the inventory, you do need to charge sales tax in any state your inventory is in because that is considered physical nexus.

@HERETOABSORB 3 года назад

@@LedgerGurus Thank you so much, I have downloaded your PDF and will have a good read through it. This is SO helpful!! I presumed Etsy charge tax as an accumulation of all their sellers, I get that, TY 😁 I don't hold any stock, it is print on demand (kinda drop shipping), so it's sent from various fulfillment centres across the U.S. It's going to be a long time before I will be making anywhere near the sales limit I think 😁 One more thing I'm having trouble with, is the Google merchant center....all my products are pending for some reason? Would you have another video with any help / advice? Thank you SO SO much 👍😁

@LedgerGurus 3 года назад

@@HERETOABSORB I'm glad you've found this all so helpful. We don't have any videos on the Google merchant center. I think you're going to have to contact them directly or google your question to get it answered. Good luck!

@HERETOABSORB 3 года назад

@@LedgerGurus Thank you again, you have a new subscriber in me, great channel 👍👍👍

@LedgerGurus 3 года назад

@@HERETOABSORB Awesome! Thank you!

@Mecharenawaffle Год назад

If we are using print for four hour fulfillment on our orders. Do we put the location of their warehouse which is in North Carolina? We are in California.

@LedgerGurus Год назад

Yes

@nancydelpero8652 2 года назад

there are only 2 cities in Alaska that I need to setup sales tax for, can I specify the 2 cities somewhere instead of the whole state

@LedgerGurus 2 года назад

You can try adding Alaska then set up overrides in all the other cities except the 2 cities? Let me know if that works!

@tonynawn 2 года назад

Hi I live i the state of Minnesota and have a shopify store that sells clothing. Minnesota doesnt charge sales tax on clothing. what do i do?

@LedgerGurus 2 года назад

You will need to add an override for the specific products and add that override to the state of Minnesota. help.shopify.com/en/manual/products/collections/manual-shopify-collection Here's a link that might be helpful!

@cryptomartian3662 2 года назад

I sell clothing on shopify but printify does all of the order fulfillment and shipping. Do I use printify adress for taxes location?

@LedgerGurus 2 года назад

No, you use the address your business is registered under for your taxes location.

@danielladiana 3 года назад

Hello! I have a question. Do you need a tax id in every state? I'm going to be running my shop out of florida and already got that tax id. Do I need to go to every state's website and apply for a tax id?

@LedgerGurus 3 года назад

You only need a tax id in a state when you have nexus there. You'll need to charge FL sales tax because you're based there, but you don't need to worry about the other states until you pass the thresholds. Sales tax is a seriously complicated thing, but we've created a free masterclass to walk you through everything you need to know to get started, including the 3 things NOT to do when you're setting up your sales tax. It's called "The Uncomplicated Truth about Sales Tax for eCommerce Businesses." If you're starting a Shopify store, I highly recommend you watch it. ledgergurus.com/resources/sales-tax-masterclass/

@Tahoematt 3 года назад

So for a store set up in Oregon. Would you need to add every state in the lower 48 manually?

@LedgerGurus 3 года назад

You only need to add states that you have nexus in. For more information on nexus and economic thresholds, download our "10 Steps t Ensure Sales Tax Doesn't Burn Down Your eCommerce Business." It has LOTS of great information in it. ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/

@utterlyrelaxed9109 Год назад

How to do all that if ii sell from a print on demand???

@LedgerGurus Год назад

You will need to first determine where you have nexus (physical and economic). Your dropshippers nexus doesn’t transfer to you.

@johnp8354 Год назад

I want to set up my shopify store in panama but sell my dropshipping products in the USA. How do I go about doing that regarding usa taxes

@LedgerGurus Год назад

ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-suUqOj3bhvs.html this video should be helpful!

@quranlistencollectrewards2492 2 года назад

Hello, thank u If i am selling from Turkey shopify but my Warehouses in Usa and they ship for me, i must pay taxes ? And where i must pay taxes ? Or i musnt pay sales taxes?

@LedgerGurus 2 года назад

I saw your similar comment on another video. To better understand this process, I suggest you download our 10 Steps to Sales Tax Compliance white paper here - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/. It will give you a really good basis in what to expect with US sales tax.

@mingzhang1001 Год назад

How would the tax be cacualted if set my fulfilment as from Amazon MCF? Which original address I should setup?

@LedgerGurus Год назад

If it’s an intrastate transaction and it’s an origin based state, the rate would be determined from the “ship from” location. If it’s an interstate transaction, all those transactions are destination based and the rate will be calculated based on the “ship to” locations

@screamdeaf 3 года назад

We are starting a print on demand shop with printful (their own fulfillment centre) and will be later expanding dropshipping with udroppy (their own fulfillment centre). We are based out of Virginia. Do we register for sales tax id with Virginia only or do we need to contact Udroppy, printful and register with the state they have fulfillment centre in ?

@LedgerGurus 3 года назад

We suggest registering with only Virginia. Your drop shippers might ask you for resale certificate at some point so they don't charge you sales tax.

@OliveBlueLex 3 года назад

Ugh this is all so confusing. So I have a ecommerce jewelry business based in colorado. Do I tell shopify i'm collecting tax in colorado or do i have to select every state? Do I really have to search all counties in these different states to get their specific tax percentages??? Also it telling me to add a tax ID for each state? Please help thank you so so muchhhh this is taking me FOREVER

@emblumen543 3 года назад

I'm out of NY and trying to figure out the same thing. It's so unclear if it's just the state you're based out of or any state you plan to sell to!

@OliveBlueLex 3 года назад

@@emblumen543 Okay so I did a bunch more research and basically (my understanding is - PLEASE someone correct me if I'm wrong) you only need to collect sales tax in NY until you hit 200 sales or $100k in sales in another state. Some states have different requirements (and it's our responsibility to research this for each state) but for example: a lot of my sales go to california so once I hit 200 sales in CA, then I have to go through the process of getting a sales tax license in CA and then adding it to my shopify profile. Idk that's what I'm doing for now and my shop is launching next week hahaha so let's hope I did this right. Unless you have a warehouse or something in another state, you don't have to worry about collecting sales tax for other states rn. Pretty sure.

@LedgerGurus 3 года назад

@@OliveBlueLex Yes, this is correct. Start by registering and collecting/remitting for any sales in your home state and states where you have a physical presence (inventory stored, employees, etc.). Then once you reach $100K or 200 transactions in any state, you should check their economic nexus laws to see if you need to register and collect. Good luck!

@OliveBlueLex 3 года назад

@@LedgerGurus Thanks for the confirmation!

@LedgerGurus 3 года назад

@@OliveBlueLex No problem!

@tayyabaali7624 3 года назад

Hi i am planning to set up a shopify dropshipping in malaysia and dropship to the UK, US, EU and other epacket countries. How do i handle my taxes? Please advice. Also, please tell me about VAT for the UK and US? I will be very thankful

@LedgerGurus 3 года назад

You can download our complete guide to sales tax in US here: ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/ We don't deal with taxes outside the US. Best of luck!

@ElectroMonsterTV 3 года назад

Hi can you please answer a quick question, at what point will it become a requirement for you to charge taxes, is it only after you make a certain amount a year? And if I’m not required to charge tax yet, do I uncheck the “All prices include tax” box in the tax settings on the Shopify website???

@LedgerGurus 3 года назад

You are required to remit sales tax for sales in states where you have sales tax "nexus". Most likely this is in any states where you have a physical presence (owners or employees live, business registered, inventory held, etc.) or a high amount of economic activity. State's thresholds for economic activity differs, but if you have $100K in annual sales or 200 in annual transactions in any state, you will want to check their economic nexus thresholds. Any states you have nexus in, you'll need to register for a sales tax permit, then collect sales tax from customers and remit sales tax to the state. Here's another video to help: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html

@jamshedsherzad8206 3 года назад

Hi, do I need VAT for EU countries?. If yes how can I get VAT for different countries?

@LedgerGurus 3 года назад

Hi Jamshed, we deal only with US sales tax. Here's an article that may help: www.xsellco.com/resources/european-vat-e-commerce/

@mochimee-boutique615 3 года назад

The version of Shopify in this video is different from the current version. Do we still have to enter the warehouse addresses manually when there is the section "App Locations" with the apps that are automatically listed underneath?

@LedgerGurus 3 года назад

Yes, those need to be manually entered and you can assign one as the primary warehouse for fulfilment, as well.

@zacharytushaus3180 3 года назад

Hi there! My name is Zachary Tushaus, I have been on the verge of opening a dropshipping business for months now; I have been watching quite a few of your videos and I realize now that a percentage of my sales will go to taxes. I'm from Minnesota and where I live I have both local and state taxes. Do you have a step by step process as how I can begin work on registering for sales tax so I can begin my online shopify business? Thanks in advance.

@LedgerGurus 3 года назад

Zachary, you can download our "10 steps" PDF that will help you: ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/ Feel free to reach out if you have anymore questions or need a consultation to get everything setup.

@cynthiahaide9402 2 года назад

how can I select no tax on clothing items in some states but allow sales tax in others on same item?

@LedgerGurus 2 года назад

You will need to create a collection with clothing items and then add override to this collection for specific states. Let us know if you want to schedule a consulting call and we can help you with this

@lucysteele 3 года назад

So if you put the tax on for a product t you’re selling and someone purchases the item and ofc pays the tax, does that tax go to you still or straight to gov?

@LedgerGurus 3 года назад

Hi Lucy, the sales tax goes to the seller. Then the seller is liable to remit that sales tax to the sate. Remember to register for a sales tax permit in any state before you collect sales tax in that state. Then you will have deadlines to file and remit any sales tax that you collect. Here's a PDF download that helps you understand these steps in greater detail: ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/

@erinwittnebel9758 3 года назад

Great video. So we are based in North Dakota. I have the sales tax set up in North Dakota. So does that mean anyone outside the state of North Dakota doesn’t have to pay tax? Only people in North Dakota pay tax?

@LedgerGurus 3 года назад

Yep, that's correct. You don't charge sales tax in other states until you pass their thresholds. It sounds like you've got a good start on this. If you'd like to get a clear roadmap for everything you need to do regarding sales tax, I recommend you to watch our free masterclass called "The Uncomplicated Truth about Sales Tax for eCommerce Businesses." It'll walk you through everything you need to know to get started, including the 3 things NOT to do when you're setting up your sales tax. If you're starting a Shopify store it'll be an invaluable resource. ledgergurus.com/resources/sales-tax-masterclass/

@dayanaperalta9513 3 года назад

Hi I don’t know if you read comments but I have a small business I’m 15 I’ve gotten over 200 transactions but only made around 10,000 the last year. Do I still file taxes

@LedgerGurus 3 года назад

We absolutely read comments and answer when we can. Congratulations on your business at such a young age. So, the answer to your question is probably a little more complicated than you think. First of all, have you registered for a sales tax ID in your home state? No matter what your sales are so far, you definitely need to register in your home state because you have physical presence there. Once you've registered, you'll be able to turn on the sales tax settings in your shop settings for your home state. Don't do that before you have your sales tax ID, though, because it's illegal to collect tax without a permit. Remember, that sales tax is NOT an expense if you've collected it from your customers. It only becomes an expense if you haven't. Your sales are so low that you probably don't need to worry about paying back taxes. If the state comes after you, it's not going to be for more than a few hundred dollars yet. But don't mess with it. Register for a permit so you can get your shop settings turned on to collect it in your state. Now, in answer to the rest of your question, unless you have a physical presence in any other state (which I doubt at this point) you don't need to worry about sales tax anywhere else yet. You DO need to watch your sales numbers, though. Economic nexus (or the responsibility to pay sales tax in a state) comes from BOTH # of transactions AND amount of sales. For more information, I highly encourage you to download our free PDF "10 Steps to Ensure Sales Tax Doesn't Burn Down Your eCommerce Business." It'll go through all of this AND has a list of economic thresholds by state in the back. Valuable reading for a new business owner like yourself. The link is here - ledgergurus.com/resources/downloads-2/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/

@thuyhuynh5462 2 года назад

I have a question, i have an LLC in FL, I live in GA and my supplier is in China, where should I register for the sales tax? Thanks

@LedgerGurus 2 года назад

You should register in GA and FL :)

@chris-g-tx 3 года назад

I have a Texas sellers permit and will be collecting taxes from Texas so I can pay the taxes each quarter. I am just confused on other states, if my business grows to where I exceed another state's threshold then that's when I should register? Since it's small, I should be okay with just collecting in Texas correct?

@LedgerGurus 3 года назад

Hi Christopher, that is correct. Once you approach $100K in annual sales or 200 annual transactions in a state, you should check their economic nexus thresholds. The other type of nexus that you need to consider as a small seller is "physical presence". If you inventory is stored in any other states, for example through Amazon FBA, then you'd need to register, collect, file, and remit in those states as well. Here's our video on sales tax nexus for more info: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_WHEq2T530I.html

@michellen7037 2 года назад

So if someone were to buy gift cards for lets say $5? why are gift cards not taxable? Arent you selling them?

@LedgerGurus 2 года назад

Yes you are, but sales tax will be charged when the gift card is spent.

@Jmatei17 2 года назад

I am setting up my Shopify for business and connecting it to my business Instagram and Facebook page. After I submitted my Bank info, I received an error " Tax verification is unavailable" I went to settings and enabled tax for my product. Then, I tried again and it's giving me another flag saying something went wrong. It's not giving me any direction. Please help! 🙏😢

@LedgerGurus 2 года назад

Can you email us at salestax@ledgergurus.com and we can help you more there?

@shawngalivan424 3 года назад

Quick question! My nexus is in the state of washington. so I only need to charge tax on shipping for order places from someone who also lives in washington correct?

@LedgerGurus 3 года назад

Yes, you only need to worry about sales tax for sales in the states where you have nexus.