U.S. Sales Tax for Shopify & Ecommerce Brands
What Founders Get Wrong
Ecommerce founders scaling on Shopify often misunderstand where U.S. sales tax obligations actually come from. The issue is not where your company is registered — it is where your operations touch the U.S.
Inventory and 3PL nexus
Storing inventory in the U.S., including with Amazon FBA or third-party logistics providers, generally creates physical nexus. Inventory can be distributed across multiple states without the seller realising.
Real-world example: You sell through Shopify and use Amazon FBA. Amazon may collect tax on marketplace orders, but your inventory may be stored in several U.S. states, requiring registration.
Marketplace vs direct sales
Marketplace facilitator laws require large marketplaces to collect tax on marketplace transactions. However, your own Shopify store remains your responsibility.
Marketplace sales often still count toward economic nexus thresholds, even when the marketplace collects the tax.
Why Shopify tools ≠ compliance
Shopify can calculate sales tax, but it does not assess nexus, register your business, or file sales tax returns. In many states, collecting tax without being registered is not permitted.
Not sure where you have nexus? Check your nexus status with our free tool.
Ready to get compliant? View our pricing for done-for-you sales tax compliance.