Setup your Shopify Taxes Correctly (only 5 min!)
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- čas přidán 7. 12. 2022
- One of the biggest concerns I see with Shopify store owners is "Did I setup my Shopify Taxes correctly?". It can be really confusing with each state having their own rules and when selling online you can receive orders from around the world.
So in this video I'm going over @shopify Tax settings and their new functionality that makes it easier than ever to manage your sales taxes for your Shopify store.
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Comment Below: Are you already using Shopify Tax or are you collecting taxes with a third-party Shopify app?
It's to the point where it's getting difficult to profit. Everyone takes their cut, from the government taking their cut 3 or 4 times (sigh) to shopify, payment processors, advertising fees, shipping, and then buying materials and products, and any apps you want all want their monthly fee...it's ridiculous. It's so hard to do any of this anymore. I was in ecommerce like 8 years ago and it was honestly easier back then. There wasn't so much BS. Now it's like everywhere you go whether it's for your own website, or selling on a platform, other people get 90% of your profits. Then the government takes ANOTHER cut, that I just found out about called self-employment tax lmao. You basically have to pay double taxes. This shit is out of control. Anyone who doesn't see the amount this government is over-reaching is blind or has Stockholm's syndrome.
so true!
that is very and unfortunate! are you still running your business?
@@Rihla_a-z yes, currently I'm making like $10k per year, still growing it. So I don't file because from what I read I'm under the limit where u have to file. Hope that's correct lol. My plan is to grow it to 6 figures so that I can still make a living after the mafia, I mean government robs me blind lol
@@Rihla_a-z this is a different business from the one 8 years ago tho
@waynefilkins8394 The new rules for this year is $600. So you will definitely have to file this year.
You didn’t show any part of setting up the tax collection within Shopify. Deceptive title
Great video! Tax-season can cause a LOT of headache to Shopify sellers, that's why it's important to make sure that the sales tax are recorded correctly.
Excellent videos!
Thank you very much for your hard work.
Thank you for this video!
Yooo this is my 5000th liked video btw. Nice!
Wow thanks 😊
Great book btw …..Everyone gotta read this book to save yourself from trouble
Ok, I do know that Shopify can collect the tax for me, then who should I pay these tax to? and how to pay? Thank you.
I don't have that new feature for taxes and duties on my Shopify. The screen you are showing is different from what I see on my screen. I don't have the screen you have been updated to a Shopify Tax. How do I go to that screen?
Thanks! A great little option to handle taxes.
Your videos are very useful and provide lots of information. I have received lots of help after watching this post, please continue to share this kind of information. Thank you.
Hello, thanks for the information, I hope you can help me with this question, is it necessary to create an EIN to sell online on Shopify?
so as you can guess im not in any countries that Shopify supports with shopify taxes so how else can i access this?
Im not understanding. When shoppify collects sales tax, then that money is also available for us to “ grab” and I have to put aside and then pay who? Like who do I send this money to since there will be several states that I sold to?
Thanks
Nice question, I would like to know the answer from someone too
Anyone know the answer? I would like to know the answer of this question too.
Do you need a license to set up the taxes?
This makes it sound like you need to set taxes up with every single state in the US, since shopify stores are based online and you never know which state you're going to ship to. Is that the case?
Great video. I am having issues setting up my store, where do I go for assistance ?
so you hired accountant when starting your business?
Great video! You made it less stressful for sure! I have a question would you happen to know where i would go to get a sales tax i.d # im building my own website and this is the last thing i i have to do
I would Google "How to get sales tax ID in California (or whatever state you are located)."
So if someone orders from my online store and they live in another state do I have to add them under regions or will ship fit let me know as long ad I'm opted in for Shopify Tax?
so i only put one state im collection tax in like where im located or put all the states that im providing service to?
That’s what I want to know!!
Hi sorry I’m so new at this. So when it charges the tax to the customer do I need to do something after that or that’s it, taxes are charged and I’m all good? Does it pay me the tax the customer paid and I have to remit it to the state myself?
Did you get an answer? This is my same question do I send payment to who because at the end of the day I will be collecting taxes from many different states.
You only need to collect taxes of you sell over a certain amount in each state called a nexus.. Otherwise you only file taxes if you make over a certain amount for the year. So that depends on what you can make per you before having to report it per your states requirements. Someone correct me if i'm wrong.. But that is my outlook so do not use this as legal tax advice. Talk with a tax expert.
@@nataliastoev3784no still no clue plus I’m in Canada
I dont see that offered in Shopify app store.
Am I required to collect sales tax for states other than where I reside, being Georgia?? To be honest, all of the taxation requirements along with being wholly unfamiliar with them, has me a bit intimidated.
Same. It seems if you reach the economic threshold for each individual state then you will need a state income ID for that state. It's making eCommerce extremely difficult for anyone.
This is so helpful! Is Shopify tax cheaper than Tax Jar?
The answer is probably somewhere like "it depends". Shopify tax charges 0.35% of the cost of the sale after you've crossed $100,000 in sales for the year. So if you are a smaller seller, it's essentially free. If you are larger, it can add up. But the cost for TaxJar can add up as well. TaxJar can also help with filing where as Shopify Tax cannot. I also can help with filing if you need.
Hi! Thank you for your video, I'm confused about the Feature (purple box where it allows you to click "Review US tax settings") I don't have that in mine and can't figure out how to have that feature?
how much can we wright off of the taxes that were our initial start up costs.... what if it took a few years to get all started...
Great video! Do you recommend going in and just adding every state since we don't know where a sale will come from?
I have the same question lol
@@breekelorton Me TOO!🥺
Same question. What did you guys do?
@@mf9724 just add your own state
@@jimmy2053 my store is based in Texas (and I also Have its sales tax id) do I have to just add texas state only? and if the order comes from anyother state shopify tax will automatically charge the customer accordingly? Please help me out
Just in time for Tax season too. I hate taxes like the next person, but if you are confused with the setup on shopify, 4 min of your time and Elle sets it straight. Thanks!
Thanks for your support! Glad it helped :)
When should an accountant be hired? After a few sales? I didn’t open my shop yet I’m still working on a business address.
I feel like an accountant won’t even know what a Shopify store is.. lol specially if your dropshipping..
If you run multiple shopify stores in the USA, do you know if these stores combined have to pay sales tax in other states when they all hit the threshold of sales in a state? or is it by each store hitting the threshold individually? thank you
It would be by each store individually
@@Curiousthemesdo you have a resource for this please? because I've been told its combined if under one llc by multiple people
How to fill out shipping override when my products is free shipping?
its so frustration setting up free shipping right?! i had to create a new shipping zone and re-enter countries into my own categories eg Asia in one zone category, US and Canada in another zone category, Local domestic where im from and EU. Once i did that, i had to go and create shipping rates under each zone category. This is the most frustrating bit of my life lol but i figured out for free shipping, you have to go into one of the add rates>edit > leave the price value of shipping at 0, > then open up the add conditions > select based on order price>enter the maximum amount eg, (you're selling a necklace for $24.99) enter only in the maximum section $24.99 That way the system will calculate it as a free shipping..I think thats right? So frustrating playing around with the minimum and maximum .. but i figured keeping it simple and just leaving the minimum.. for now its working for my store. But whenever i add into both the minimum and maximum section, it doesnt work for any international or domestic when i try to test it myself. Anyway goodluck :S Shopify shipping is the biggest pain in the arse i swear! Not straight forward :S I wish they had more features for zoning categories. Sometimes i couldnt find where certain countries were in what zone so i ended up starting from scratch with zones and its been working fine so far :S Took me HOURS!! like nearly the whole day. Definitely over 10+ hours of my damn life wasted just to figure this shit out lfmao PMO! lol I hope you figure it out! GOODLUCK! 😩
@@amkmammu9705Yep. A major cluster f*** this is. I'm with Shopify. I was trying to go by a different method but my Customcat POD rep sent me a chart that calculates my shopper's T-shirt shipping cost by weight using various weight ranges. Between 5lbs-25lbs it's only $15.99. That's a lot of T-shirts! It's an excellent deal at 20lbs of T-shirts! I set up my free shipping between $64.00-$126.00 and the algorithm prioritizes this over weight. I tested the chart with various shopping amounts vs weight and everything works well. This chart saved me. I'd be singing the Blues...
It's just this tax thing now... another PITA. UGH!
What about shipping into Canada? I had a few orders. Customers are reaching out back, saying they have a huge import fee to pay.
How does that happen?
Hello, I ship pottery to Canada. I thought I was doing my customers a favor with cheaper shipping using UPS, however they have to pay a huge fee to collect it. If i use USPS which costs more then they don't. I don't know much more than this. This is the feed back i have been given from several customers.
i live in australia no idea how do i get this
I selected to collect from all states !!! And I cannot change my settings to MD only. I dont even have a sales tax id- do I really need one? Im not reaching big sales
Im trying to figure out if im supposed to only collect tax from maryland or if im supposed to collect from all 50 states?
What about internationally?
great video, thanks.
New Sub! Ok i am SUPPER confused. I am trying to set up my shopify as we speak, BUT it is very confusing because i did register my business with a fictitious business name and even got my EIN registered with the IRS. So now the only option that shopify gives under business category is Sole proprietor and LLC, Corp ect.. So when i put in sole proprietor it defaults to only being able to put in my SSN and i do not want to mix my personal with business, that is the whole point on why i got my EIN, to open a business bank account and also have an EIN to separate from my personal taxes. So what should i do? Shopify will not accept my EIN unless i have an LLC.
That is frustrating im sorry. Yeah the standard for a sole proprietor is the SSN so im not sure if you can change that but it may be worthwhile to contact shopify support to check.
I have single-member LLCs so they still have the protection and EIN but they are less complex than a regular LLC. You still have the same fillings with the state for all LLCs though.
I contacted Shopify support and all you have to do is if you have your EIN you can request for them to use your EIN instead of your SSN if you are a sole proprietor. They don't tell you that, i had to do my research. Summit a letter of your EIN proof and that's it@@Curiousthemes
@@Curiousthemes It's ok! I actually just had to summit my EIN letter to shopify and request that they use my EIN as an individual instead of my SSN for tax purposes. And it worked!
@@JMICTHEBRAND. yay so glad you got it worked out!
Hi Elle, is this sales tax only applicable to US sellers?
Yes this is for collecting sales tax in the US
You only need to collect taxes of you sell over a certain amount in each state called a nexus.. Otherwise you only file taxes if you make over a certain amount for the year. So that depends on what you can make per you before having to report it per your states requirements. Someone correct me if i'm wrong.. But that is my outlook so do not use this as legal tax advice. Talk with a tax expert.
I want to ask
Shopify business tax is 30% rate
But Hong kong business tax is only 8% in first 2M$
Do I have to pay shopify tax 30% if my business is located in hong kong?
Probably no. You should talk with some accountant in your country
Because you are paying taxes to your country, not to shopify!
@@_aleksandarmicic_ thanks a lot✌🏻
@@idontknow8255 no problem
Basically, you are selling a book. This did not show how to set up my taxes in 5 minutes
🙏🏽🙏🏽🙏🏽
The United States has over 50 states. Do I need to apply for a sales tax ID in each state?
No I’m California for example you have to sell 50 grams to establish a nexus
@@BrianSmith-yq7ys my store is based in Texas (and I also Have its sales tax id) do I have to just add texas state only? and if the order comes from anyother state shopify tax will automatically charge the customer accordingly? Please help me out
Setup your Shopify Taxes Correctly (only 5 min!) = pay for some app to do it for you.
Useless tutorial.
clearly didn't watch the video.