How Do I Avoid Tax On Shopify?
For merchants selling products online, it is important to be aware of the taxes you may be required to pay. Fortunately, Shopify makes it easy to set up your store so that you can avoid paying taxes on some of your products. Here’s how to do it.
Set a Product to Be Exempt from Sales Tax
To avoid paying taxes on a certain product, you’ll need to make sure it is set to be exempt from sales tax. To do this, follow these steps:
- Log into your Shopify admin.
- Click on Products.
- Select the name of the product you would like to make exempt from sales tax.
- In the Pricing section, uncheck the box that says “Charge taxes on this product”.
- Click Save.
Once you have saved the changes, the product will be exempt from sales tax. This can be a great way to save money and ensure that you are compliant with all applicable tax laws.
Other Ways to Avoid Tax
In addition to setting certain products to be exempt from sales tax, there are a few other ways you can avoid paying taxes. For example, you can:
- Register for a sales tax exemption certificate in your state.
- Take advantage of any tax holidays that may be offered in your state.
- Make sure you are charging the correct amount of taxes based on where the customer is located.
By taking the time to research and understand the various tax laws in your area, you can save a lot of time and money.
Avoiding tax on Shopify is easy and can save you a lot of money. All you have to do is set a product to be exempt from sales tax, and you can also take advantage of other tax exemptions or holidays. By following the steps outlined above, you can ensure that your store is compliant with all applicable tax laws.