Shopify launches new tool Shopify Tax to help sellers manage sales tax!

It is learned that the e-commerce platform Shopify has launched a tool to help merchants manage their sales tax collection obligations. Its long-term goal is to build a complete end-to-end sales tax solution for sellers. A spokesperson for Shopify said: Starting October 12, all Shopify sellers doing business in the United States can use a new feature called "Sales Tax Insights" to meet their state-level VAT requirements.

Shopify Tax makes it easy for sellers to understand their responsibilities and calculate and collect taxes. Shopify actively monitors the most common and urgent requests received from sellers. This information helps us decide what to build next and understand whether our products or alternatives meet the needs of sellers. The above solutions provide all sellers with how to scale sales, industry expertise, or tax expertise.

Initially, the tool will be free for everyone until the end of the year. Sellers can use the new sales tax calculation tool for free as long as their store reaches $100,000 in sales per year. After that, a transaction fee will be charged on each order in jurisdictions that impose the tax.

Shopify says sellers are tired of not knowing how to collect taxes correctly and being blindsided by fees when filing their taxes each year.

Key features of Shopify Tax:

• Sales Tax Insights: Merchants can track tax obligations and what they are responsible for. Sales Tax Insights will also inform sellers in which states they need to pay taxes, and provide detailed information on local state-level tax requirements.
• Product Classification: Shopify helps sellers ensure they charge the correct tax rate by suggesting the tax category that best fits their products.
• Accurate tax rates: Sellers can apply the right taxes at the right time and calculate taxes based on the buyer’s precise address. Shopify has integrated with more than 11,000 US sales tax jurisdictions.

It is learned that Shopify will also notify sellers of major changes in the tax field that may affect their business, and said that Shopify also integrates with e-commerce tax applications so that sellers can use the most suitable compliance solution.

Editor ✎Estella/

Disclaimer: This article is copyrighted and may not be reproduced without permission.