Eligibility and considerations for using automated filing with Shopify Tax
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Eligibility for automated filing with Shopify Tax
Only certain stores and orders are eligible to use automated filing. Before you set up automated filing with Shopify Tax, ensure that your store and orders are eligible.
- Automated filing is available only for stores in the United States that use Shopify Tax.
- Automated filing is not available if you used a tax service other than Shopify Tax in 2024, such as Basic Tax, Manual Tax, or third-party tax apps.
- Orders that had tax collected by a tax service other than Shopify Tax at the time of the transaction, will not be included in tax filing reports.
- Automated filing is not available if your store has customers who've requested data erasure.
- To file your tax returns, you must complete your setup for each state where you collect sales tax before the filing deadline.
- Taxes are filed only for sales that were made on the Shopify platform where you are the merchant of record. Automated filing can't be performed in stores with the following type of sales:
- Imported orders.
- Sales channels that aren't connected to Shopify.
- Marketplaces where you aren't the merchant of record, such as Amazon, Meta, or TikTok. If you're not sure whether you're the merchant of record for a sale, then refer to the Filed by channel column of the taxes finance report. If the entry for a sale is marked as Filed, then the marketplace has indicated that it files taxes on your behalf.
Considerations for using automated filing with Shopify Tax
Before you use automated filing, review the following considerations:
- Automated filing is performed only for current or upcoming filings. If you need help with past or amended returns, then contact a tax professional.
- Automated filing cannot support SST at this time.
- Automated filing will not include orders that had tax calculated by a tax service other than Shopify Tax.
- Automated filing isn't compatible with the Loop Returns & Exchanges app.
- Automated filing cannot support prepayments in any state at this time.
To ensure accuracy in returns that are generated by automated filing, the following must be true for the entire period that you file for:
- Tax-inclusive pricing is deactivated for your store.
- USD is set as your store currency.
Marketplace sales reporting for automated filing
Marketplace facilitators, such as Amazon, Etsy, Meta, and TikTok, are responsible for the collection and remittance of sales tax on behalf of merchants that use their platforms. However, even though these marketplaces frequently file and remit taxes, certain states and localities require that you report those sales in your gross sales totals.
Channels supported for automated filing
Shopify Tax automated filing includes sales that were made on Shop and on Meta channels (Facebook and Instagram) in your gross sales totals, where required.
If you sell with sales channels that aren't supported, then you can still use automated filing for states where there are no marketplace reporting requirements. However, Shopify doesn't check your marketplace settings when determining eligibility for automated filing. If you have questions about your specific tax liabilities, then consult a tax professional.
Refer to the following table for states that might require marketplace sales to be reported on tax returns.
| Not required | Required |
|---|---|
| Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Maryland, Michigan, Missouri, Mississippi, North Dakota, New Jersey, Nevada, Ohio, Rhode Island, Tennessee, Utah, Virginia, Vermont, West Virginia, Wyoming | Alabama, Arizona, California, Connecticut, District of Columbia, Hawaii, Iowa, Indiana, Kentucky, Louisiana, Massachusetts, Maine, Minnesota, North Carolina, Nebraska, New Mexico, New York, Oklahoma, Pennsylvania, South Carolina, South Dakota, Texas, Washington, Wisconsin |