How To Charge Taxes On Your Shopify Store | Easy Method

[@wevhufashion]

This is the best video that I have seen where you explain taxes and Shopify clearly. Thank you!

[@KerryEgeler]

Thank you so much

[@GiveitsomeSOUL]

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.

[@amberpatterson9646]

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

[@KerryEgeler]

I love hearing that. Thank you so much

[@yomyoppenheim1538]

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

[@KerryEgeler]

Wow, thanks so much! Taxes can be extremely frustrating. Glad this helps!

[@maifranco79]

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!!!

[@KerryEgeler]

You're so welcome!

[@laflakvar]

The most clear and complete explanation that I've found. Thank you Kerry!

[@KerryEgeler]

OMG thank you so much for those kind words!

[@fastpraylemonade]

Agreed. Just subscribed for that reason

[@TasleemPatel-o7h]

😂😂damn. I've roamed all around watching those bunch of sales tax videos couldn't helped me. Why no one could explain as simple as that! Your video made me stress less ❤❤❤thanks alot! 👍

[@KerryEgeler]

Glad it was helpful!

[@TheAlishamarie2290]

Thank you!! I was so confused and overwhelmed about the tax portion. This helped tremendously.

[@KerryEgeler]

So glad!

[@keithbetts4656]

Best explanation that does not try to scare you into buying some sort of consultation or service! I just subscribed!

[@KerryEgeler]

Let’s goooooo!

[@jaredsemingson7565]

I've watch like 6 videos on this topic and yours made the most sense

[@KerryEgeler]

Let’s goooooo thank you!

[@danaevs2232]

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 ❤

[@ginnysilver]

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.

[@AdrianJ]

The video I didn’t know I needed. This was sooooo thorough, thank you so much for the step by step walk through!!

[@KerryEgeler]

Thank you for the kind words!!

[@PeacefulRelaxation24]

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

[@ElizabethAmanna]

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.

[@KerryEgeler]

Tax jar saves you about a million dollars worth of time, worth it

[@backs8189]

i’d rather pay those fees and make sure i’m paying proper taxes , also not stressing myself out by paying them myself

[@sampalma4087]

What does this mean for Florida?

[@mychaelthomas525]

Finally, some explaining this in a simpler way and not speaking as if your audience are tax experts! Appreciate the Info!

[@KerryEgeler]

Man I love that comment! Thank you

[@pamelalande1713]

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?

[@ginnysilver]

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.

[@myka16]

I don't typically comment or like KZbin videos - But when I do, it means the video was FREAKING HELPFUL! THANK YOU!

[@KerryEgeler]

OMG thank you! You’re very welcome!

[@boujeejewels5663]

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

[@KeontraTyese]

Same for me literally going crazy lol I’m so happy I found this video

[@itsinyouryard]

Absolute best video on this subject. How on Earth are the other youtubers skipping over this??!?! Thanks man.

[@KerryEgeler]

Thank you so much!

[@emc1081]

Im in California. Do you have a video for shipping set up and costs? Thankkkk you so helpful

[@KerryEgeler]

Here's a great free resource to help you get started! www.kerryegeler.com/shirtschool

[@sandraroberts6623]

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.

[@KerryEgeler]

Yes! It can seem like a lot up front, but you've got this!

[@briauna1406]

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.

[@KerryEgeler]

I have only ever filed in Oklahoma

[@iva6433]

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.

[@hyberrt]

First video I found that actually explained it clearly

[@KerryEgeler]

🕺🏻🔥

[@lisastitt7653]

We’re here in Oklahoma! THANK YOU for this!!!

[@KerryEgeler]

You’re very welcome!!

[@shadongeche3827]

Bro your a blessing, this video saved me I was mad close to giving up after spending hours making my store🙏🏾

[@KerryEgeler]

Thank you for watching and thanks for your comment!

[@DiamondLifer]

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?

[@rodri12509]

Wow, this info is gold. Thank you for dropping these gems.

[@tommydaq2]

Perfect timing, Kerry!!! Just got my state's Sales & Use Tax license!!! Thanks for this!

[@KerryEgeler]

Let’s gooooo !

[@tommydaq2]

@@KerryEgeler Opening a Brick & Mortar for Luv Pup so very anxious for that POD to Screen Printing training!

[@EncielMcx2005]

I have been holding out on my website launch due to the tax issue and not understanding how it works in Shopify. After watching several videos, yours was what I needed for completion of the task at hand. My only question is that Shopify has changed the format within the tax section. The items that you featured as not the same as I have available. I was not sure if you have update this tutorial since you initially posted? I look forward to hearing from you. Thank you again! Really great work!

[@KerryEgeler]

Thanks for the suggestion! I do not currently have an updated tutorial, but I will consider putting another out

[@alexg8842]

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

[@KerryEgeler]

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.

[@alexg8842]

@@KerryEgeler thank you for the clarification and fast reply , just subscribed 👍🏽

[@alexg8842]

@@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?

[@nardu]

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?

[@mikalarson363]

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.

[@emmapigliavento4499]

Great video! Quick question, how do I know I’m properly charging sales texts for customers outside of my home state? I’ve had a few orders from customers where they should have had to pay sales tax and didn’t…I just don’t see anywhere on Shopify where you can select to charge all US states (if applicable). Thanks in advance!

[@KerryEgeler]

You only need to be concerned with this if you are selling a significant amount outside of your state. Generally speaking, you don’t need to worry about sales tax outside your state unless you have let’s say $10k/month+ in another state. States have different thresholds for requiring sales tax.

[@mbagley3618]

Kerry this is golden..you gotta be the goat!

[@ginnysilver]

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.

[@DragonRex]

This explained everything I needed in 11 minutes, i thank you so much man

[@KerryEgeler]

Glad to hear that

[@thehealthylife5715]

Another legendary video! And this is the first time I've been on your channel!

[@KerryEgeler]

Dang!! Love it!!

[@gggooogggttt]

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?

[@KerryEgeler]

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.

[@jadenbelcher1729]

Best informative video yet, I was extremely confused and you just made it so simple.

[@KerryEgeler]

Awesome

[@justjordan2478]

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.

[@KerryEgeler]

Glad I could help

[@EslamovicxXx]

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!

[@dmontaeturner6045]

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!

[@KerryEgeler]

Thank you so much!

[@kma5785]

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!

[@HappyBox-r7b]

pardon, did you find this answer to your questions? because i have the same questions...

[@ZwyczajnieKonrad]

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 😉

[@ria2212]

Thank you so much for this! You were clear and straight to the point.

[@KerryEgeler]

Thanks for watching!

[@gefflee6518]

We have to collect sales tax for in state and out of state for TN

[@briannabarberio]

This was so incredibly helpful! I really appreciate you taking the time to explain this. Thank you so much!!

[@KerryEgeler]

Glad to hear this!

[@TienNguyen-np6ol]

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!

[@KerryEgeler]

That is correct, but double check your state

[@confidenceovercomparison]

INSTANT FOLLOW THANK YOU! just launched today and was confused about this topic thank you!!

[@CheckOasis]

Thanks Im actually From Oklahoma!!

[@KerryEgeler]

Cool!

[@aleesap8944]

Very informative and straight to the point! Thanks so much Kerry!

[@KerryEgeler]

You’re very welcome!

[@mmandkat]

This was soooo helpful! Other videos are so vague but you really made it easy to follow. Sharing this with my friends!

[@KerryEgeler]

Thank you!

[@AuthenticVibe]

Giving me a lot of hope goin forward w my website

[@mohsin1017]

thanks for the great information. I am based in Norway and starting a POD business. My suppliers will be from China, Usa etc. I will be using printify. I want to just target the US market. I will be paying income tax from my store. but what about sales tax? and how should I go about it?

[@KerryEgeler]

I am sorry, I don’t have advice for you with you being based in Norway. I am not familiar with the tax laws over there.

[@_._Cynda_._]

Hello, thanks for this video. So do I have to report sales in other states? Or just report sales from within my state?

[@KerryEgeler]

Look at local laws in your state, but generally you only collect sales tax from sales made inside your state.

[@Mrpersondjrhjsjsj]

Does taxjar deal with sales taxes and income taxes? Thanks 😁 Most helpful video I’ve seen on taxes! Edit: is there a better substitute for taxjar since after looking through reviews their service seems to be terrible now then it was before… thanks.

[@KerryEgeler]

If you don’t use an app, you can do it manually. When I was doing it manually, it would take me 3-4 hours on average in one sitting to process my sales taxes each month. This could be quicker depending on how good the system is in your state. Oklahoma stinks.

[@BaileesWRLD]

thank you so much seriously I subcribed

[@MirahLov3]

Wow thank you! Super easy! I’m so happy I found your video.

[@KerryEgeler]

You’re very welcome! Thanks for watching

[@Martin1519]

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.

[@therealjohnsonz]

Thank you so much for this info...I was kinda worried 😟

[@KerryEgeler]

You’re very welcome!

[@shakeilanicholls7020]

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?

[@KerryEgeler]

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 🙏🏻

[@phouathao1853]

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!

[@KerryEgeler]

Thank you so much!

[@RestWellSupplyCo]

Asking to know for sure... I run my business in Texas. I've sold and shipped items to customers in WA and they were not charged sales tax. Is this normal? No states outside of Texas will be charged tax?

[@KerryEgeler]

Yes this is totally correct and normal

[@itsTashaQ]

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?

[@MuelaBravaTV]

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

[@tiki8003]

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

[@KerryEgeler]

Glad to here that!

[@MarkoCeki]

Definitely learned some valuable info here. Thanks boss man

[@KerryEgeler]

Thank you for watching!

[@johntrexler5164]

Super helpful man! Thanks a bunch!

[@KerryEgeler]

You’re welcome!

[@Preserver-mn6bj]

So When do I need to get a sales tax permit or do I even need one if I use Tax Jar?

[@RitaSmith-ei6ot]

What about print on demand? I am in FL but the company that makes the item and mails it to the customer is in California.

[@KerryEgeler]

If you're looking for a print on demand provider that would be shipping closer to your customers, Gelato is a great option. They have numerous locations globally, and therefore faster shipping time.

[@davisking14]

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?

[@PierreCalifornia]

What if there buying from NY and I’m in CA cause taxes don’t pop up in check out ?

[@alice.L.]

Please explain how to calculate taxes on shopify page if customers buy stuff from another countries instead and not only in one as a business owner who lives in one home country?

[@KerryEgeler]

You don’t charge tax or pay tax on these sales

[@ebayseller6040]

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

[@unnaturalmma]

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

[@paigegeidel8978]

Thank you for this insanely helpful video!!!

[@RR-js4nl]

Binge watching your channel. To the point information! Just subscribed 💪🏻

[@KerryEgeler]

Thank you! 🕺🏻

[@jaschirag924]

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!

[@KerryEgeler]

FL has no state sales tax at all!

[@brookvisser]

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?

[@OnMyGrudge]

Should I start with Tax Jar then when i get enough sales get a LLC?

[@KerryEgeler]

Get your LLC and sales tax permit before using taxjar

[@OnMyGrudge]

@@KerryEgeler thank you and lastly do i need to buy a 150$ llc or i can get the basic 50$ one

[@bigred4994]

What if all our sales come from other states. I'm in Texas. If no one in Texas buys from me do I still file or file zero.

[@tonys490]

we are from UK.. whats is difference between sales tax and vat ? are they same ?

[@KerryEgeler]

No idea

[@MintoringLifeProject]

I wanted to do what you say about Not to collect taxes at the beginning, but shopify reported me that I needed to do it, and checking the NY state law, they say that even sole proprietorship Must register for tax collect and register the business before starting. So, I had to do it before opening the online store.

[@KerryEgeler]

Do your thing!

[@anjadeichmann]

Great video! Have the rules changed for/in 2022? If so, do you have an update for us? Thank you. :)

[@KerryEgeler]

As far as I’m aware, this process is still current!

[@chicanita6824]

​@@KerryEgeler Is it still current now or do you have an updated video now in 2024?

[@nolashdemon]

what if your shop is in Canada and you're selling in the states?

[@albertoruiz7793]

What about adding sales tax on other states? Would you have to add every single state individually and get a sales tax permit for every single state?

[@KerryEgeler]

Look at local laws in your state, but typically you only collect sales tax from sales made inside your state.

[@brennenvestal5173]

All great useful information. Could you possibly do a video about charging VAT for small businesses?

[@KerryEgeler]

I’m not familiar with VAT

[@TheSmoothGeneration]

Thanks so much! so helpful!

[@johnsonmaleka]

This was helpful thank you

[@danielwall1277]

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

[@KerryEgeler]

Your business as a whole would need to hit the threshold unless you have them setup as completely separate businesses.

[@saudahn]

Thank you so much. Straight to the point and well explained.

[@KerryEgeler]

You’re very welcome!

[@ginnysilver]

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.

[@OlayiwolaAAlara]

Thanks for educating.

[@KerryEgeler]

Thank you for watching!

[@OlayiwolaAAlara]

@@KerryEgeler Let's meet up and rub minds if you're ever in New York. God bless.

[@quranlistencollectrewards2492]

If i have office in florida and warehouses in new york i must add one location my residnet based iffice ?

[@KerryEgeler]

You would pay taxes on any sales you make to customers in Florida and New York. And you would need sales tax permits in both states I believe

[@Xynor02]

Shopify taxes works by Billing address or shipping address?

[@rewindsc5044]

Hey question because I’m so confused and been trying so hard to understand. Your video helps a lot but my question is let’s just say we are using your account to sell stuff. You only turned on sales tax for your state of Oklahoma but what if something sells in South Carolina? You only turned on sales tax for Oklahoma so do you have to turn it on for South Carolina since you sold it there? Or is it only turned on for the state where you are physically located?

[@KerryEgeler]

In most states, you only need to worry about sales within your state

[@SM-cn4ek]

Thankyou so much, such great video, very helpful

[@KerryEgeler]

Thank you for watching

[@LilTrapFR]

Do I still collect sales tax if I just plan on selling under my ssn and not get a LLC ? And what happens if I don’t collect sales tax ? How do I pay the sales tax that I collected if I operate my business under my ssn and don’t plan to get a LLC ?

[@EvacTheGreat]

so I don't have to buy a sales tax ID for all the states I sell to because my business is not actually there?

[@KerryEgeler]

That is true

[@augustodemattos]

Hey Kerry, thank you so much for this video!!!!

[@KerryEgeler]

You’re very welcome!

[@Joepiii]

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?