How To Charge Taxes On Your Shopify Store | Easy Method
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- Опубликовано: 4 авг 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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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!
This was so incredibly helpful! I really appreciate you taking the time to explain this. Thank you so much!!
Glad to hear this!
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
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 is the best video that I have seen where you explain taxes and Shopify clearly. Thank you!
Thank you so much
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.
This was soooo helpful! Other videos are so vague but you really made it easy to follow. Sharing this with my friends!
Thank you!
Wow, this info is gold. Thank you for dropping these gems.
Very informative and straight to the point! Thanks so much Kerry!
You’re very welcome!
Thank you so much for this! You were clear and straight to the point.
Thanks for watching!
Another legendary video! And this is the first time I've been on your channel!
Dang!! Love it!!
Thank you for this insanely helpful video!!!
Best explanation that does not try to scare you into buying some sort of consultation or service! I just subscribed!
Let’s goooooo!
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!
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
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
I don't typically comment or like RUclips videos - But when I do, it means the video was FREAKING HELPFUL! THANK YOU!
OMG thank you! You’re very welcome!
I've watch like 6 videos on this topic and yours made the most sense
Let’s goooooo thank you!
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
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!
Thanks so much! so helpful!
Hey Kerry, thank you so much for this video!!!!
You’re very welcome!
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
This was helpful thank you
Definitely learned some valuable info here. Thanks boss man
Thank you for watching!
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.
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!
Great video, very useful information! Thanks!!
You’re welcome!
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!
First video I found that actually explained it clearly
🕺🏻🔥
Thankyou so much, such great video, very helpful
Thank you for watching
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.
Super helpful man! Thanks a bunch!
You’re welcome!
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?
Absolute best video on this subject. How on Earth are the other youtubers skipping over this??!?! Thanks man.
Thank you so much!
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.
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
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!
Thank you! Great video!
Thank you for watching!
This was super helpful. Thanks
No problem
INSTANT FOLLOW THANK YOU! just launched today and was confused about this topic thank you!!
We’re here in Oklahoma! THANK YOU for this!!!
You’re very welcome!!
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 😉
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!
Giving me a lot of hope goin forward w my website
Best informative video yet, I was extremely confused and you just made it so simple.
Awesome
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
Great 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!
Thank you!!!!!!!
Thank you!!!
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?
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
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?
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!
Thank you very much man
No problem
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
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 so much for this info...I was kinda worried 😟
You’re very welcome!
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
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?
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
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.
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.
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 Im actually From Oklahoma!!
Cool!
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.
what if your shop is in Canada and you're selling in the states?
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.
Hey Kerry, is the sales tax id # the same as an EIN (for the state you are incorporated)?
BEST VIDEO!!!!!!!!!!!!!!
🕺🏻🕺🏻🕺🏻
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?
God bless you !
K so I'm so confused by this. If I start an online store and lets say I have 20 items for sale. If I sell 1 item in my state I pay tax in my state. If 10 other users come and make a purchase from other states do I collect tax for their states as well or do they not pay tax until I hit my limits in that particular state? or do I collect taxes anyway and pay it to my state?
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?
Should I make sales before setting up sales taxes on shopify to collect?
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
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...
So When do I need to get a sales tax permit or do I even need one if I use Tax Jar?
I still don't get it. So do I only choose my state when collecting tax?
What about they are from different state purchasing to my website? Do they still get charge for the tax?
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?
if i dont live in the us but still sell in the us, is there any difference with the steps i have to take?
If someone that does not live inside my state, they don’t need to pay sales tax? I looked back on some previous invoices for people out of state and it did not charge tax on their purchases.
Great informative video, thank you! I'm still unclear on other states sales tax though...I'm based in AZ so I would set up my state sales tax collection and remittance here. But if I sell to other states, do I not need to collect sales tax at all since I don't have a physical presence there or only when I reach each state's threshold of sales/income?
Correct, Shopify will automatically collect sales tax on sales within your state. Check local laws in your state, but generally will not need to collect sales taxes in other states until you reach their threshold.
What if there buying from NY and I’m in CA cause taxes don’t pop up in check out ?
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 🙏🏻
Wth man thank you so much
Shopify taxes works by Billing address or shipping address?
After how much money does one pay sales tax?
Okay so I’m based in PA. If someone from say New York or Florida buys something they don’t pay any tax on the product but people from PA will pay tax? I used big cartel before shopify and on every product I just put the clothing tax code and everyone would pay taxes regardless the state besides states like Jersey who don’t pay tax on clothing. Let me know thanks!!
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?
so if i live in california and me and my family are making our products in texas do i charge tax in only california since i am running the website? Also do we add every state on shopify if we sell to every state?
Wherever you have physical presence, so Cali
Hi Kerry quick question: If I have a nexus in NJ (personal property) and starting dropshipping on shopify, do I have to collect tax sales in NJ (even if I didn't exceed 100k in sales or 200 transactions ?)
Here in Oklahoma, we have to collect sales tax on any sales that are inside OK, and they require us to file each month, even if we had $0 in sales
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.