Understanding Sales Taxes For Your Shopify Business

How can I just ignore sales treshold if I am not over xxxx€ in revenue ?

i feel like he made this complicated on purpose! "our clients. our clients" the fact that he keeps saying that is basically asking people to crawel to them and seek their help, when it reality it doesnt even need to be this complicated.

Best video I have found. Thank you for the info!

Wow, one of the best ecomm-related videos I have seen in a while. Great explanation and info. Much appreciated, keep up the great work!

Nice video! Thanks for sharing this video with us. I like the video and it is very helpful for me. Thanks for sharing.

Great video, clearly explained everything... I went through about 10 other videos before this (some which were more than double the length of this one) and I still had unanswered questions after it... your production explained everything I needed to know in a clear, logical and step-wise manner.

you earned my sub, thanks!

This was extremely helpful. Thank you

Thank you for the video!!! We learn a lot with you! Thank you!

This doesn’t apply to non us citizens doing Shopify out of the U.S correct?

The United States has over 50 states. Do I need to apply for a sales tax ID in each state?

This is an amazing explanation. Just to be clear, if I'm using a print-on-demand service (Printful) with no physical nexus, and I'm very unlikely to hit 200 sales (per Nevada's threshold), I don't need to be collecting sales tax on the t-shirts I'm designing?

thank you sir, that's was a valuable information

wow im starting up a business and was getting nervous when i got to the sales tax portion. You broke it down perfectly! thank you!

Super helpful! Thank you bro

So we dont charge sales tax for outside states unless we reach the threshold for those states, right? Once we reach the threshold, do we have to work backwards and pay the taxes for the threshold of 100k or just moving forward pay taxes on future sales? Thank you.

Hello, I'm starting my ecommerce print on demand business (drop shipping) and I've only registered for sales taxes only in Florida since that's where I live. I've made no online sales yet. Do I need to register for every state to obtain a resales certificate before I launch my website? I'm worried that if I make a sale online and I don't charge tax, later down the line when I do hit the economic threshold for that state I will owe money.

If I don't need to worry about that now, when should I worry about it?

Can you explain if they come after the prior years sales or after that year?

So you are advising ecommerce business owners to not pay taxes unless you make enough money in a certain state. I think you should pay the taxes anyways XD

Appreciate the video, what about selling from the USA overseas? Thanks.

Just saw this:

“There is no sales tax obligation for the retailer if it has not established nexus in a state. However, if a retailer does collect sales tax in a state in which it is not registered to do so, that constitutes an illegal activity. Do not collect sales tax for sales in states where you have not registered to collect sales tax or established nexus.”

So does that mean that you only start collecting sales tax after you sell, for example, 200 products in Utah?

When do you register? As soon as you hit 200? What happens if you sell 210 products and you haven’t finished the registration yet?

Or can you register before 200? And if you do, do you only start collecting after 200?

Thank you!!!

Very helpful

Thank you very useful. How does it work if you are selling from the outside the US, to US customers?

Thank you very much. I understand it much better. Its good to know that Shopify has that button. It makes it easier to do accounting and put the taxes on the for annual payment. Question, if you are a Religious Non-Profit how are taxes handled?

Thank you this was very helpful!

Thank you--this was so helpful. Can you do a video on resale / reseller certificates at some point please? I have one for my state, and it satisfied Printify and Shineon, but Printful wants a certificate for every single state, which is just confusing as hell to me. Thanks again!

Thank you so much!

Great job

If i have physical nexus in one state and economic nexus in another state does that mean i need to charge a customer taxes for both states if they live where i have economic nexus? For example, if i have physical nexus in California and it was 8% tax rate and i have economic nexus in Pennsylvania and the tax rate is 7%, and a customer in Pennsylvania buys something from me, do i need to tax them 15% and remit the taxes to each state accordingly?

Hi Chris, Thank you for this informative video. How can I contact you discussing about business in US?

Very infomative, thanks!

Wow you should REALLY get rid of the background music it is incredibly distracting to what you're saying

The only question we can't find an answer to is do you COLLECT sales tax PRIOR to the thresholds that are crossed? Or do you ONLY pay for the amount AFTER that threshold is met? E.G. We have $300K sales in Utah, after the threshold of $100K is passed, we START to collect taxes on the $200K that was earned AFTER the threshold was passed. OR... Do we collect PRIOR to the $100K threshold and then ONLY PAY if we cross it?

Very informative thank you!

I really appreciate your time and effort in helping to explain this topic! 🙂

What if I am from Mexico, live in Mexico, and I have a lot of sales in the United States passing the threshold in some states? Do I need to register and get a tax permit in those states being a Mexican business?

Excellent presentation. Factual and to the point. Thanks so much.

Super informative video and extremely helpful in understanding the basics!

Just a few clarifications/questions:

1.) Is there a way to find out if certain goods are exempt from sales tax, in certain states?

2.) Once you determine where you need to be registered to charge sales tax, you just flip the button in Shopify, and it automatically calculates sales tax for those states at checkout based on the customer’s location, right?

4.) Do you still pay each respective state’s sales tax when they’re due, even if you don’t meet their economic nexus threshold (sales volume vs. number of orders)?

Wow Thank You! This was so informative! How much are your sevices and should we aquire the sellers taxes per each state on our own or do you offer a service that does that for us? Besides that what service do you offer that is so a software like TaxJar. Please advise. Thank You

US is too complicated 😪

Thanks for the content - super informative and super helpful. Have a great day.

Best video I’ve seen on sales taxes yet thanks for this amazing breakdown

Excellent breakdown - thank you for taking the time to create and upload this video.

Hi Chris! Thank you for your videos. Extremely helpful. My “side hustle” business is registered in TN where I have ALL the inventory and where I ship it from. But, I am a resident of FL by choice. I spend time in both places and I have another job in FL. Although I go there often and a lots of my sells are to that state, I don’t keep any inventory there and I ship everything from TN. I don’t sell anything in person in FL, I just guide them to shop on my website. Do I HAVE to consider FL a nexus?

Do you have any social media like instagram I can follow

Hi Thank you so much for this video, very informative. We are an online business shipping from Georgia, USA. We don't seem to have any economic nexus (yet) with other states, Does that mean we should just collect remit sales tax for sales in Georgia?

Such a Good informative video