Lesson 12: Setting up taxes

When you own a business that sells products or services, you must collect taxes to submit to the government every time someone places an order with you (some exceptions apply, such as for digital goods in many jurisdictions).

Most tax computations will be handled automatically by Shopify using default sales tax rates from throughout the world. Even so, you should do some research or consult with a tax specialist to verify you’re charging the right amount of sales tax.

If your location has particular tax requirements, such as taxes on certain items or delivery, you can modify the default tax settings.

Set up your tax areas in Shopify by going to Settings > Taxes. If you like, you may change the default rates here, or add overrides if unique criteria in your location or for your items apply.

 Under Analytics > Reports, you can check how much tax you’ve collected.