The new product allows users to:
- Accurately collect the right amount of taxes with calculations based on their customer's delivery address.
- Leverage sales tax insights that notify them which states they may be required to pay taxes in, and which state thresholds they're approaching.
- Collect the right rates by suggesting the tax category that best fits their product, and automatically applying it based on local rules.
Use of sales tax calculation is free for a store's first $100,000 in sales each year, and after that, a small transaction fee will apply per order in jurisdictions where taxes are collected. For the remainder of 2022, it's completely free for everyone, no matter how much they sell. The enhancements are planned to be rolled out to merchants over the next few months.
Shopify said its next major project will be advanced reporting that provides a detailed breakdown of how much someone sold and collected in a format compatible with tax filings.
