Key Highlights
- Shopify has introduced a new tool to its offerings in a bid to ease some of the managing processes facing sellers in the US.
- Shopify Tax includes a feature that helps highlight when a business in the US is liable and a solution for ecommerce platform owners to collect the right amount of tax at the right time.
Concentrating on SMBs, the sales tax calculation tool is free for the first $100,000 in sales each year for owners of online stores. Post that, a transaction fee will apply per order in jurisdictions where taxes are collected.
Easy On The Tax
Shopify Tax also gives sales tax insights that ensure merchants have a clear view of their current and upcoming tax calculations.
Vibhor Chhabra, head of tax products at Shopify, says the tool will be entirely free for the remainder of 2022, regardless of how much a business sells.
He says their long-term goal is to build a truly end-to-end solution for businesses. Today, They are starting by focusing on two areas, i.e., knowing when owners are liable and calculating and collecting tax.
The team at Shopify actively monitors the most common and pressing requests they get from merchants. This information helps them decide what to build next and learn whether their products or alternatives meet sellers’ needs. These two areas appeared at the top of those lists consistently.
The Shopify Tax tool also send notifications to merchants about any significant changes in the tax world that might impact their business and advises on the best action to move forward. Chhabra also mentions that Shopify deciphers the 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 proper tax rates on products by suggesting the tax category that best fits each item on their site.
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