General guidelines for tax exemptions and charges on Shopify billing in North America
If you live in a region where Shopify is required to charge taxes on any of your account charges, then these charges display on your Shopify invoice.
On this page you will find information on managing taxes for your Shopify store, including understanding your tax responsibilities, applying for tax exemptions, and navigating specific taxation requirements in the United States (US) and Canada.
On this page
Understanding your tax responsibilities as a merchant
You're responsible for all taxes related to your subscription or purchase of Shopify's products and services. These taxes are calculated using the billing address you provide and will be charged to your authorized payment method. If you move to a new area, then you need to make sure to update your location in your Shopify admin.
You must also handle all tasks related to calculating, collecting, withholding, reporting, and paying any taxes, duties, fees, or extra charges that result from sales in your Shopify Store or from using the Services. Refer to the Payment of Fees and Taxes section of the Shopify Terms of Service and Tax overtides and exemptions for more information.
How to apply for a tax exemption on Shopify
If you're exempt from paying taxes related to your subscription or purchase of Shopify's products and services, then you must provide Shopify with proof of your tax-exempt status. Typically, this involves submitting an original certificate that complies with legal requirements, which can vary by country and region.
Your tax exemption will take effect after Shopify has verified and accepted your documentation. To start this process, contact Shopify Support for further assistance.
Refer to the Payment of Fees and Taxes section of the Shopify Terms of Service and Tax overtides and exemptions for more information.
Countries where you can enter your tax number to activate tax exemption in billing settings
In the following countries, you can enter your tax details to obtain a tax exemption:
Countries where tax exemption application on Shopify are unavailable
Currently, Shopify doesn't offer tax exemption status for VAT or Goods and Services Tax (GST) to merchants in the following countries:
- Ireland: Merchants in Ireland can't apply for tax exemption status for VAT charged on their Shopify bills.
- South Africa: Merchants in South Africa don't have the option to obtain tax exemption status for VAT charged on their Shopify bills.
- Singapore: Merchants in Singapore can't apply for tax exemption status for GST charged on their Shopify bills.
- Switzerland: Merchants in Switzerland can't request tax exemption status for VAT charged on their Shopify bills.
Specific tax responsibilities for Shopify subscriptions in the United States (US) and Canada
If your business is located in a Canadian or American jurisdiction where Shopify has a business presence, then Shopify is required by law to charge applicable taxes on your subscription. Shopify charges taxes only where required to do so by the tax authorities of your jurisdiction. These taxes are related to your Shopify subscription and aren't influenced by the products or services you sell.
US states and districts mandating Shopify to collect sales tax
Shopify is a Canadian company operating in Canada with a sales tax collection requirement in the following US states and districts.
If your store is located in Canada or in any of the listed states or districts, then your subscription might be charged applicable taxes, such as harmonized sales tax (HST), provincial sales tax (PST), goods and services tax (GST), state tax, county tax, or municipal tax.
If your store is located outside of Canada or the states and districts where Shopify has a tax collection requirement, then taxes shouldn't be applied to your subscription charge.
The taxes display on a separate line in your bill. You can also view a taxes calculation based on your location.
List of US states and districts where Shopify is obligated to collect sales tax
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Requests for tax documents
You can contact Shopify Support to request documents that assist with your tax returns. For instance, you might request a fiscal residency certificate, which explains why withholding tax (WHT) isn't applied to your bill due to a tax treaty between your country and the country from which we issue your bill. Additionally, US merchants might need to request our W8-BEN-E form.
Shopify Tax transaction fees
Tax transaction fees are applied to applicable orders using Shopify Tax and are charged separately from your Shopify subscription. Shopify Tax is available to all merchants that sell to customers in the United States, European Union, or United Kingdom. Learn more about Shopify Tax transaction fees.