Sales Tax 101 Shopify

Shopify Plus Merchants: How to Automate Your Sales Tax Filing

by Jennifer Dunn

Shopify Plus Sales Tax Automation Software

Shopify Plus merchants are on the lookout for a sales tax automation solution to take all the frustration out of reporting and filing sales tax.

Sales tax is especially trying for eCommerce sellers, because you’re almost always tasked with charging the sales tax rate at your buyer’s ship to address, which can vary widely across a state or even within a single county. Further, most states make filling out sales tax returns difficult, by requiring you to break down how much sales tax you collected from buyers in each county, city and other special taxing jurisdiction.

According to Jake Kassan, CEO of MVMT (and Shopify Plus merchant), “[Before TaxJar], we literally spent three 10-hour days going through and calculating sales tax, running reports and figuring out the amount of sales tax collected in every jurisdiction.”

Shopify Plus MVMT Watches TaxJar

MVMT is just one of the Shopify Plus merchants that now uses TaxJar to put a lid on Shopify Plus sales tax.

Better yet, Shopify Plus users can use TaxJar to automate sales tax reporting and filing even if you use another service to collect sales tax!

Automate Shopify Plus Sales Tax Reporting

When your sales tax filing due date rolls around, you’re tasked with figuring out how much sales tax you collected in each city, county and other special taxing jurisdiction. Here’s an example of just a small portion of a California sales tax return:

California Schedule B

Yikes!

TaxJar eliminates this hassle. Here’s how:

  1. Connect your Shopify Plus account to TaxJar:

Shopify Plus TaxJar

2. We’ll slice and dice your sales tax collected and provide you with a state sales tax report for each state in which you collect sales tax. Here’s an example of our California sales tax report:

Report of California sales tax broken down by jurisdiction

You can use this information to login to your state’s sales tax filing system and file your Shopify Plus business’s sales tax returns. Or you can use TaxJar AutoFile to automate your sales tax filing.

Automate Shopify Plus Sales Tax Filing

TaxJar will also file your sales tax returns for you in all 45 states (plus D.C.) that have a sales tax. AutoFile costs an additional fee per filing.

To enroll in AutoFile and completely take sales tax off your plate, just:

  1. Login to your TaxJar account (No account? Try a 30-day free trial!)
  2. Click “Enroll in AutoFile” next to the state in which you wish to enroll
  3. Fill out the information we ask for accurately and completely (this varies by state)
  4. Wait for our verification email

And that’s it! You’ve put a lid on the hassle of sales tax.

TaxJar AutoFile also ensures that you take advantage of any sales tax discounts that about half the states offer to merchants who file on time.

Do you have questions or something to say about using TaxJar to take the hassle out of Shopify Plus sales tax? Start the conversation in the comments!

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