Setting up automated filing with Shopify Tax

Early access

Automated tax filing is in early access, and is available only to certain merchants in the United States.

Automated filing is free to use until the end of the early access period on December 31, 2024. Starting on January 1, 2025, a fee is charged for every return generated by automated filing. For stores on the Basic, Shopify, and Advanced plans, the fee is $75 USD per return generated. For stores on the Plus plan, the fee is $50 USD per return generated.

Caution

This guide is for informational purposes only, and isn't intended to replace professional tax advice. Tax laws change frequently. If you have further questions about your tax returns, then you should contact local tax authorities or a tax professional. It's your responsibility to consult with tax authorities or tax professionals to ensure that you file and remit your taxes correctly.

After reviewing the considerations for automated filing, you can start setting up your returns. To start filing taxes automatically, you must first complete your account details and set up your state tax returns.

Complete account details

Note

To file your tax returns, you must complete your setup by the 20th of the month you want to file. If you need to file quarterly or annual returns, then the deadline is the 20th of the last month in that period.

To do any of the following, a staff member must have the Taxes and duties permission and at least one Finance permission:

• access the Automated filing page
• act as a point of contact for notifications related to filing
• act as a legal signee for tax and other legal documents

If the desired staff member can't perform any of these actions, then update their permissions to include the necessary permissions.

Steps:

1. From the Shopify admin, go to Finance > Tax filing.
2. Click Activate.
3. Provide your account details:
   1. Review your business details to ensure that they're correct. If you need to update your business details, then contact Shopify Support.
   2. Select a payment method. This account is shared with the appropriate state tax authorities for payments or refunds associated with your tax returns. The list of available accounts comes from any existing Shopify Payments or Shopify Balance account information.
   3. Select a point of contact. The point of contact is the staff member that receives any notices related to filing, such as notifications regarding review periods or issues that need to be resolved in order to file on time. The list of available contacts is derived from the staff accounts in your store.
   4. Select a legal signee. The legal signee is the staff member responsible for signing tax and other legal documents. The list of available contacts comes from the existing staff accounts in your store.
4. Click Save.
5. Carefully review the terms and conditions for using automated filing, and then click Agree.

After you've set up automated filing, you can set up your tax returns for the states where you pay tax.

Set up state tax returns

Note

To file your tax returns, you must complete your setup by the 20th of the month you want to file. If you need to file quarterly or annual returns, then the deadline is the 20th of the last month in that period.

Most state tax returns are set up by using a standard set of steps. If you need to set up a tax return for the following states, then perform the steps specific to those states:

• Colorado
• New York

Set up a standard state return

1. From the Shopify admin, go to Finance > Tax filing.
2. Click Set up tax returns.
3. Select a state to set up a tax return for.
4. In the Forms section, click Set up to add form details and select your filing frequency. If multiple forms are available and you're not sure which one to use for your tax filing, then refer to a tax professional or the state's tax authority. Refer to State tax forms and IDs for a list of tax forms by state.
5. If there's more than one form, then click Add forms and select the filing frequency for each form.
6. In the Sales tax ID section, enter your state sales tax ID. Refer to State tax forms and IDs for details on how each state refers to the ID.
7. In the Login credentials section, enter the username and password that you use to access your account with the state tax authority.
8. Authorize Shopify Tax to access your account:
   1. Copy the email address provided in the Shopify admin.
   2. Go to the relevant state tax website and sign in to your account.
   3. Paste the email provided in the Shopify admin to receive a one-time passcode. This passcode is shared with Shopify Tax, the store owner, and the point of contact, and is used to authenticate the account so that returns can be filed on your behalf.
   4. Enter the one-time passcode in your account with the relevant state tax website.
9. Click Save.

After you've set up a state, you can then repeat as necessary to set up additional states where you collect sales tax.

Set up a Colorado state return

1. From the Shopify admin, go to Finance > Tax filing.
2. Click Set up tax returns.
3. Select a state to set up a tax return for.
4. In the Forms section, click Set up to add form details and select your filing frequency. If multiple forms are available and you're not sure which one to use for your tax filing, then refer to a tax professional or the state's tax authority. Refer to State tax forms and IDs for a list of tax forms by state.
5. If there's more than one form, then click Add forms and select the filing frequency for each form.
6. In the Sales tax ID section, enter your state sales tax ID. Refer to State tax forms and IDs for details on how each state refers to the ID.
7. In the Login credentials section, enter the username and password that you use to access your account with the state tax authority.
8. Authorize Shopify Tax to access your account:
   1. Go to the Colorado Department of Revenue (DOR) website and log in to your account.
   2. Click Manage My Profile.
   3. Select More….
   4. In the Access box, click Manage Secondary Logons.
   5. Click Add.
   6. Enter the information for the secondary logon: a username, email address, and access level for the person to whom you're giving access.
   7. Click Next.
   8. Select the Security Group and all accounts that this username will have access to, then click Submit. A pop-up window will appear stating that access has been granted. A confirmation email will be sent to the email address entered for the secondary login containing a link for the new user to set their password and log in.
9. Set up Site branch IDs:
   1. Go to the Colorado DOR website and log in to your account.
   2. Click Add or close sales tax locations.
   3. Click Add non-physical locations.
   4. Click Select all.
   5. Click Submit.
   6. Download the file from the Colorado DOR site.
10. Click Save.

Set up a New York state return

1. From the Shopify admin, go to Finance > Tax filing.
2. Click Set up tax returns.
3. Select a state to set up a tax return for.
4. In the Forms section, click Set up to add form details and select your filing frequency. If multiple forms are available and you're not sure which one to use for your tax filing, then refer to a tax professional or the state's tax authority. Refer to State tax forms and IDs for a list of tax forms by state.
5. If there's more than one form, then click Add forms and select the filing frequency for each form.
6. In the Sales tax ID section, enter your state sales tax ID. Refer to State tax forms and IDs for details on how each state refers to the ID.
7. In the Login credentials section, enter the username and password that you use to access your account with the state tax authority.
8. Authorize Shopify Tax to access your account:
   1. Go to the relevant state tax website and sign into your account.
   2. Create a new user with the details provided by Shopify Tax.
   3. Copy and paste the new user information back into the state set up form and create a temporary password. This password is used to access the account so that Shopify Tax can file on your behalf.
9. Click Save.

If you need help setting up automated filing, then send an email to automated-filing@shopify.com .