We've automated location-based taxes, also known as supply-side taxation. This means that when adding products to your store, you simply enable or disable taxes.
Whether or not you charge sales tax is determined by local and federal regulations.
When adding new products to your store, simply check or uncheck "Sales tax," and we'll take care of the rest, regardless of where your customers are located.
Tax number requirements in Canada
Merchants selling in Canada and earning 30,000 CAD or more are required to register GST/HST. If you're not sure whether this requirement affects you, then contact your tax authority or local tax expert.
When buying electronically supplied services online, VAT is due. This means as the merchant you're required to apply a VAT tax on sales if your customer or customers are located in applicable countries within Europe.
Sales tax on digital products that do not have a physical component vary from state to state. There are five States that do not collect taxes on digitally sold products, Alaska, Delaware, Montana, New Hampshire, and Oregon. Whether you need to charge a sales tax is based on your Nexus.
Nexus is the connection between your business and state, it can be a physical nexus like office location or an economic nexus like revenue produced. If you're not sure whether this requirement affects you, then contact your tax authority or local tax expert.