Do dropshippers need to collect sales tax?

In the U.S., all sellers (whether retailers or drop shippers) are required to collect sales tax if they have sales tax nexus in the state to which the item ships. This means that you, as the buyer from your third-party vendor, may be responsible for paying sales tax if your vendor has nexus in your state.

Do international sellers have to pay US sales tax?

You are an international seller, with no physical presence or sales into the United States. If you do not have a physical presence in the U.S., nor make sales into the U.S., then you are not required to collect U.S. sales tax.

Do I need to charge sales tax on international sales?

In general, the sale of merchandise to a resident of another country is taxable if the buyer takes possession of the item in this state—even temporarily—or uses the item before it is shipped abroad. However, some sales to foreign residents qualify as exports and are not subject to California sales or use tax.

How many US sales tax jurisdictions are there?

11,000 sales tax jurisdictions
Key Findings. There are over 11,000 sales tax jurisdictions in the United States, with widely varying rates.

Do I charge US customers tax?

If your customers are in the USA you generally do not need to charge state sales tax unless you have a Sales Tax “Nexus” (ie. an office, branch, employee or warehouse based in the US). If you do, you need to charge and remit state sales tax based on your customer’s location.

Does Shopify automatically collect sales tax?

Shopify’s built-in tax engine automatically collects sales tax for you, from wherever you tell it to – even if you have sales tax nexus in more than one state. To turn on sales tax collection in Shopify, simply go to Settings > Taxes. The Shopify Tax Manual quickly and thoroughly walks you through setting up sales tax.

Do I have to charge sales tax on Shopify?

Shopify is not required to collect and remit sales tax in behalf of its sellers. Unlike Amazon or Ebay, Shopify is not a “marketplace facilitator”. Therefore, Shopify doesn’t fall under marketplace facilitator laws that require stores like Amazon or Ebay to collect and remit sales tax for its sellers.