Economic nexus: What every Shopify seller should know

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  • Опубликовано: 29 окт 2024

Комментарии • 32

  • @johndugdale
    @johndugdale 8 месяцев назад +1

    Thanks for this - invaluable!

  • @thecoffeegoat
    @thecoffeegoat Год назад

    You did a wonderful job explaining! Very grateful for your work! Thank you! 🙏🏽

  • @TareignTV
    @TareignTV Год назад

    Thank you so much for the clarity regarding this topic.

  • @harshitgajera7708
    @harshitgajera7708 2 года назад

    Amazing explanation Veronika kudos to you

  • @Legacy4two
    @Legacy4two Год назад

    THANK YOU!!! Awsome info!!

  • @alinesilva5114
    @alinesilva5114 2 года назад

    Great explanation, Veronica! Thanks a lot!

  • @jjjjj2819
    @jjjjj2819 2 года назад

    Nice Presentation...

  • @erikcoleman4592
    @erikcoleman4592 Год назад

    So just to be clear
    As a beginner should or should I not collect taxes before I hit any given states nexus?
    Also if I’m a drop shipper and my supplier that is drop shipping for me is in Georgia, do I have a physical nexus in Georgia? Along with a physical nexus in my home state Texas where my operation is set up?

    • @5MinuteBookkeeping
      @5MinuteBookkeeping  Год назад

      Hi Erik. I can't advice you on your specific situation. However, as a beginner, you likely do not have Economic nexus in other states. As far as physical nexus is concerned, it would be best if you consult with a sales tax specialist. My go-to experts are salestaxandmore.com

  • @whatsthefrequency
    @whatsthefrequency Год назад

    Great video! Question: I am Canadian, my Shopify store is set to US only and will only sell to US customers (apparel comes from US distribution centers). It's print on demand so I hold no stock. Therefore, I will charge $0 in taxes until I meet the nexus threshold for each state? So when someone buys a t-shirt they will pay no taxes at all? Thank you so much for your time.

    • @5MinuteBookkeeping
      @5MinuteBookkeeping  Год назад +1

      Hi. You would not withhold sales taxes until you meet the nexus in a State. Keep in mind also that clothing may be tax-exempt in some states.

    • @whatsthefrequency
      @whatsthefrequency Год назад

      What do you mean I would not withhold sales tax?

  • @sweegster
    @sweegster Год назад

    Hi Veronica, I wanted to ask you a question I can’t seem to get answered anywhere else. Is it cumulative? What I mean is if it took me 4 years to reach a Nexus is that how it works or is it each year it goes back to zero and you start over for that year? I know you say the current year and the previous calendar year, but it just doesn’t explain it well enough for me. Thanks ahead of time!! Robert

    • @5MinuteBookkeeping
      @5MinuteBookkeeping  Год назад

      Each state has a different look-back period. Many states only have a one-year look back period. Take a look at the chart provided by salestaxandmore.com. Their chart includes look-back periods.

  • @christyedwards3538
    @christyedwards3538 2 года назад

    Can you do a video on this subject for life coaches who offer 1:1 services, online courses and membership sites?

    • @5MinuteBookkeeping
      @5MinuteBookkeeping  2 года назад +1

      Hi Christy. That's a very specific topic. Since each state's rules are different, you would need to look up the rules for each state to see how they tax services and digital products. The important thing would be whether digital products are subject to sales taxes in a particular state.

    • @christyedwards3538
      @christyedwards3538 2 года назад

      @@5MinuteBookkeeping Thank you!

  • @Dwallace-80
    @Dwallace-80 Год назад

    If I collect tax from my customers who leave in another state and I don’t reach the Nexus threshold. What happens? Am I obliged to return the money to the customers? How companies know when they will reach the Nexus. It is so hard 😢

    • @5MinuteBookkeeping
      @5MinuteBookkeeping  Год назад

      You should not collect sales taxes if you don't have Nexus and if you haven't registered to collect sales taxes in a state. If you have, then you should refund it to your customers.
      You should work with a sales tax expert to help you determine if you have reached nexus in a state. The rules are different in each state, which makes it very complicated. I recommend using salestaxandmore.com.

  • @twillia76
    @twillia76 9 месяцев назад

    So let me get this straight. If I never meet the monetary or the transaction threshold, I will never have to collect sales tax?

  • @sourcingape1839
    @sourcingape1839 Год назад

    Sadly this doesn't work anymore on shopify with out paying for the new tax part they now offer.

    • @5MinuteBookkeeping
      @5MinuteBookkeeping  Год назад

      You are right, but Shopify Tax fees apply only for sales > $100K.

  • @dwightlooi
    @dwightlooi 7 месяцев назад

    Between the second you met the economic nexus and when you finish registering and start collecting sales tax, I am sure there will be a few days and some transactions for which taxes were not collected. Do they simply let that slip? Do you pay out of your own pocket? If the latter is true, won't you want to register and start collecting when you get close to the threshold rather than wait till you have crossed it?

    • @5MinuteBookkeeping
      @5MinuteBookkeeping  7 месяцев назад

      The rules vary by state. It's best to work with a sales tax expert so they can guide you through the process and help you comply with each state's regulations.