06/09/2026
Selling on Shopify? Here is what your platform is not telling you about sales tax.
Shopify collects tax at checkout. That feels like enough. It is not.
Here is what actually needs to happen for you to be compliant:
- Nexus monitoring. Every state has an economic nexus threshold, usually $100K in sales or 200 transactions. The second you cross it you are required to register. Shopify does not track this for you or alert you when you hit it.
- State registration. Once you hit nexus in a state you need to register with that state's Department of Revenue before you can legally collect and remit tax there. Shopify does not do this.
- Return filing. Every state you are registered in requires you to file returns on their schedule. Monthly, quarterly, or annually depending on your volume. Miss a filing and penalties start accruing immediately. Shopify does not do this.
- Marketplace vs direct channel liability. If you sell on Amazon, Etsy, or any marketplace alongside your Shopify store, your liability calculation gets more complex. Marketplace facilitator laws shift some of the responsibility to the platform but not all of it. You need to know where the line is.
- Audit defense. If a state audits you, you need records, documentation, and someone who can respond on your behalf. Shopify gives you a report. That is not the same thing.
Do a nexus check. Know which states you are exposed in. Handle it before a state notice handles it for you.
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