how to see the districts within the counties for sales tax in shopify

foreign,collecting sales tax in Shopify this,confuses a lot of people,does Shopify have a setting where you,can immediately collect sales tax from,your customers when they make a purchase,should I collect sales tax in every,single state that I receive an order,from,these are the types of questions that I,will be addressing today in this video,but before I begin I do want to throw,out out a little disclaimer that I am,not a public accountant,and you of course should always consult,with your own accountant to make sure,that you and your business are,collecting sales tax in the correct way,but in this video today I do intend to,give you a little bit of insight so that,you can go into that conversation with,your accountant,understanding some of the basics,so let's begin,does Shopify have a setting to,immediately collect sales tax from your,customers when they make a purchase,yes,should I check to see what my settings,are set to because they might not be,correct,yes,should I collect sales tax in my own,state from day one,yes unless you live in Delaware New,Hampshire Montana or Oregon,should I collect sales tax from every,single state,from every Shopper in all of the states,when they make orders from me,well that depends,and let me explain why,so you as a business owner,need to collect sales tax,from,customers and states where you have a,tax Nexus,let me explain what that means,tax should be charged in the state you,are registered in and any other state,that you sell high volume to,next this is based on number of sales,and or,dollar amount of sales,let me break this down further for you,and then I will show you how you can,check your own state requirements and,requirements for other states you sell,to when you're starting out and haven't,made very many sales in other states you,should only charge tax in the state that,you have a physical presence in unless,you live in Montana New Hampshire Oregon,or Delaware,if your sales are low in another state,then you have not yet qualified for tax,Nexus,so that means that in your Shopify,settings you should only list your own,State as the state to collect sales tax,in,now an important note if you do not have,a sales tax permit in a state and you,charge,sales tax for Shoppers in that state you,can get audited,let me repeat that,if you do not have a sales tax permit in,a state where you have shoppers,shopping from you and you still charge,sales tax to those Shoppers you can get,in trouble,you tell Shopify which states to collect,sales tax in,now if you're receiving an order from,someone who lives in another state than,you and you do not have a presence in,that state,and it is your first time ever receiving,an order from a person in that state,then you do not need to collect sales,tax,now eventually when you start to grow,and your volume,and your sales increase,you need to be on the lookout for when,it is time to start collecting sales tax,and that will depend on,the threshold for the state so every,state has different requirements based,on certain thresholds let's walk through,an example,I live in Georgia and let's pretend that,it's my first year in business,I could either be online only and,shipping products to people in other,states or I could have a physical brick,and mortar in the state of Georgia this,scenario applies to either situation,so let's pretend that I,start to,make sales to Shoppers in the state of,Florida,I've only made twenty thousand dollars,worth of sales in Florida at this point,I do not need to obtain us sales tax,permit in Florida yet,because I have not met the threshold,to need one I have not met the tax Nexus,in Florida yet,but let's fast forward four years let's,say that it is year four,I have now sold,a hundred twenty thousand dollars worth,of Revenue in the state of Florida,and at this point I officially need to,obtain my sales permit in Florida,and I need to start collecting charging,sales tax to Shoppers in Florida because,the threshold for Florida is one hundred,thousand dollars worth of Revenue,once Nexus is achieved you do need to,start charging sales tax and you need to,change your settings in Shopify to make,sure that it is immediately,collecting sales tax in the states that,are applicable,now each state is going to have their,own thresholds let's change up the,scenario let's pretend I'm still in,Georgia but this time I am making sales,in Ohio,'s thresholds states that I must start,collecting sales tax when I've made a,hundred thousand dollars in revenue or,if I have surpassed 200 transactions,in this case if I had only collected,eighty thousand dollars in revenue from,Shoppers in Ohio but I have had 200,transactions then I need to start,collecting sales tax and obtain my sales,tax permit,so it is important to understand the,thresholds for each state New York for,example has has a threshold of five,hundred thousand dollars in revenue or,100 transactions,another example would be,if I have a physical brick and mortar in,the state of Georgia and Florida,then I need to collect sales tax in both,States regardless of my revenue and,regardless of how many transactions I've,done,if you are still confused or you just,want to check out which thresholds apply,to you for each state there is a website,that you can use,that will walk you through an assessment,to determine which states you need to,collect sales tax in,I will demonstrate it now and I will,link to it down in the description bar,as well but once again I just want to,call out that it's really important that,even after you've gone through this,assessment you should still talk to your,accountant to make sure you are setting,everything up correctly okay so what,you're going to do is come to this,website and you're going to scroll down,until you see take the free assessment,so I'll go ahead and click on that,from here it's going to say that I can,start my free Nexus assessment I'll,click get started,first up it's asking me where I,currently collect and remit sales tax,notice that Delaware Montana Oregon and,New Hampshire are not available choices,because you would not be collecting,sales tax there,so let's pretend that in this scenario I,am based out of Kentucky,so I'll click that if I was currently,based out of two locations or I was,already collecting sales tax in another,location I could select it but I'm going,to go ahead and click next,now it wants me to select where I make,sales but don't collect sales tax,so if there are states that you sell to,more frequently you can select those I'm,actually going to go ahead and select,all so we can demonstrate,what that looks like but once again,you'll just select the states that you,already,have purchases from,now I'm going to click next,and here it's asking me how much do you,sell in these states,so,it if I were to have sold more than 250,000 dollars in total revenue in Alabama,I would select Alabama,if I were to have sold more than a,hundred thousand K in total revenue or,had more than 200 transactions in Alaska,I would click Alaska,and I would continue on selecting all of,the states,if I've met that threshold if I haven't,met the threshold in any of the states I,will not select any,I will leave them all blank and I will,click on get your results,now it's going to ask me to fill out my,information to show me the results,and now it's showing me that,I have not exceeded the annual threshold,in any of the states,but I do need to watch all the states in,yellow,and I currently collect and remit sales,tax,in Kentucky,and if I were to scroll down,it would show me all of the states that,I'm approaching the threshold in so,remember,I haven't met the threshold on these yet,but I need to keep an eye out for when I,do,so this,information here is very useful and and,you should refer back to it because,there are a lot of details about the,threshold that you can read through for,each state and make sure that you work,with your accountant to make sure,that you are doing everything correctly,so now that you have an understanding of,what tax Nexus is and collecting sales,tax and Shopify I still recommend that,you meet with your accountant just to,make sure that you're following,everything by the books,but with that let me know if you guys,would like to see a video on how to,adjust your settings in Shopify,feel free to comment down below,but other than that make sure you give,this video a thumbs up and subscribe to,learn about all things Shopify,e-commerce,clothing boutique world,selling things online local pop-ups and,so much more I cover it all,and with that I hope you guys enjoyed,and I will see you guys next time

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