Taxes

As a seller, you might need to charge taxes on your sales, and then report and remit those taxes to your government. Although tax laws and regulations are complex and can change often, you can set up Shopify to automatically handle most common sales tax calculations. You can also set up tax overrides to address unique tax laws and situations.

Shopify uses many default sales tax rates, which are updated regularly. If you use the default rates, then you need to confirm that the rates are current and correct for your particular circumstances. You can override them whenever necessary.

You should always check with a local tax authority or a tax accountant to make sure that you charge your customers the correct sales tax rates, and to make sure you file and remit the taxes correctly.

Tax service availability by region

The tax services or settings that you can use for your Shopify store depend on the location of your business.

Overview of the tax services and settings that you can use with Shopify in different countries and regions.
Countries and regionsAvailable tax services
The United StatesIn the United States, you can use Shopify Tax. If you don't use this service, then you can use Manual Tax to set and manage tax rates yourself.
The European Union and the United KingdomIn these countries and regions, you can use Shopify Tax. If you don't use this service, then you can use Manual Tax to set and manage tax rates yourself.
CanadaIn Canada, you can use Shopify Tax. If you don't use this service, then you can use Manual Tax to set and manage tax rates yourself.
Norway, Switzerland, Australia, New Zealand, and SingaporeIn these countries and regions, you can use Shopify's Basic Tax service.
All countries and regions except Norway, Switzerland, Australia, New Zealand, and SingaporeIn these countries and regions, you can use Manual Tax to set and manage tax rates yourself.
All countries and regionsIn all countries and regions, you can use paid third-party tax apps to manage the way that you collect tax instead of using Shopify's tax settings.

In this section

General tax set-up stepsLearn what to do before turning on tax collection in your store. Understanding the impact of tax collection on displayed pricesSee when taxes are included in displayed prices versus added at checkout. Include taxes in product pricesShow prices with or without tax depending on where customers shop. Setting up tax rates for Shopify POSLink your POS location to a shipping zone so taxes calculate correctly. Shopify TaxAutomatically calculate and collect accurate sales tax in the US, EU, UK, and Canada. Basic TaxSet up tax rates manually by entering your tax registration number for your region. Manual tax settingsSet your own tax percentages by region when not using Shopify Tax. Tax appsConnect third-party apps like Avalara or TaxJar to automate tax calculations. US taxesSet up automatic sales tax collection for states where you're required to charge. EU taxesSet up automatic VAT rates and product-specific tax overrides for EU sales. TSE Compliance in GermanyInstall the TSE app to make your German cash register compliant and export tax records. UK taxesSet up VAT rates and tax collection for UK-based stores selling domestically and to the EU. Canadian taxesSet up automatic tax collection for GST, HST, PST, and QST across Canadian provinces. Taxes in JapanConfigure Japan's consumption tax rates and enable tax-inclusive pricing for your store. GST in India FAQConfigure GST rates, registration requirements, and tax-compliant invoicing for your Indian store. Collecting international duty and import taxesCharge customs fees upfront at checkout instead of on delivery. Tax reportsView and export sales tax data broken down by state, county, and jurisdiction for filing. Tax overrides and exemptionsMake specific products, customers, or locations exempt from automatic tax calculations. Shipping taxHow to turn shipping tax on or off for your store. Digital product taxesSet up EU VAT collection based on your customer's location. Data ExporterExport your store's customer and sales data when required by tax authorities.