In a bid to simplify some of the US managing situations, Shopify (opens in a new tab) has added a new component to its offerings.
Shopify Tax has an advantage that helps highlight when a business in the United States is liable, as well as a way for owner of an e-commerce platform (opens in a new tab) to be eligible to pay the right amount of tax at the appropriate time.
The sales tax calculation tool, focused on small businesses, is available for online stores to receive the first $100,000 in sales each year, and provides a transaction fee that will be applied in jurisdictions where taxes are collected.
Easy on the tax
Shopify Tax provides sales tax forecasts that give merchants a clear perspective on their current and future tax reports.
Vibhor Chhabra, the head of Shopify''s tax products, believes the tool will last for the remainder of 2022, regardless of how much a business sells.
Our long-term goal is to provide a truly end-to-end solution for your business. Today, we started by focused on two areas: knowing when youre is responsible and calculating and collecting tax.
Shopify is constantly monitoring the most common and pressing requests we receive from merchants. This information helps us decide what to build next and learn how our products or alternatives are beneficial to your needs. These two areas have always appeared on those lists.
Shopify Tax offers additional information to merchants about potential adjustments in the tax world, and advises them on the best steps to proceed. Chhabra notes that Shopify has deciphered over 11,000 US sales tax jurisdictions, so merchants do not have to.
The tool also includes a product categorization feature that helps merchants ensure they are collecting the appropriate tax rates on goods by stating the tax category that best fits each item on their site.