Can I Sell On Shopify Without Collecting Taxes?

Yes, you can sell on Shopify without collecting taxes.

Depending on the state in which you operate and the type of product or service you’re selling, you may not be required to collect taxes.

This is often referred to as a “tax holiday”.

For example, in most states, if you’re selling digital goods, you’re not required to charge taxes.

This is because digital goods are seen as services, not physical products.

Similarly, some states have exemptions for small businesses with annual revenues less than a certain level.

Once you’ve determined that you’re legally not obligated to charge taxes, it’s important to make sure that you’re not immoral or unethical.

Even if you’re not legally required to collect taxes, you may still want to do so.

This is especially true if your customers live in different states than your business – as it can be a very tricky situation.

When it comes to setting up your Shopify store, you can easily configure it so that you do not charge taxes.

Here’s how: first, turn on the “No Tax” option in your store settings.

It’s found in the “Settings – Taxes” section.

Second, decide which types of products or services are exempt from taxation and set them up accordingly.

For example, you can label digital goods as “tax exempt” so that any transactions involving those goods will not generate taxes.

Finally, it’s important to remember that it’s ultimately up to you to comply with the laws in your country and state.

Be sure to consult with a qualified tax professional if you have any questions regarding which taxes you should collect from your customers.

Collecting taxes is a complex area, and it’s easy to make mistakes.

However, with the right understanding and some careful setup, you can easily configure Shopify to not charge taxes if you’re legally exempt from doing so.

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The Takeaway

Yes, it is possible to sell on Shopify without collecting taxes.

Depending on where you live, state and federal laws may dictate the items for which you must collect taxes and when you must remit these taxes.

For example, in the United States, businesses must collect sales taxes on any items they sell to customers within their own state.

This means that if your business is located in California and you sell goods online, you must collect the appropriate taxes from customers in that state.

With Shopify, you will have the choice to either turn on automatic tax collection for every state or to set custom rates in specific states.

It is important to note, however, that you must accurately report, collect and pay taxes on all sales in your respective jurisdiction.

In addition to sales taxes, you may also have to collect and remit consumption taxes such as value-added tax (VAT) or goods and services tax (GST).

NAFTA countries such as Canada and Mexico, as well as many European countries require collection of this form of tax.

While your tax requirements may vary based on where you and your customers are located, Shopify provides the tools you need to easily maintain tax compliance.

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  • Can I Sell On Shopify Without Collecting Taxes?

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Additional Shopify Resources

With Shopify being one of the largest eCommerce platforms on the market means you’ll never be short of resources to learn how to build a profitable eCommerce business.

Kanteneo aims to be the best Shopify blog on the market, but you may require additional resources to help you on that journey. Below we’ve listed a top-selling Shopify book by Veronica Jeans to help you learn how to launch a profitable business.


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Terry Wingfield

A techy at heart, with over 10+ years of software engineering skills, and 5+ years experience in ecommerce, retention, and personalization.