What Are Shopify "Shop" Transactions?
Shopify "Shop" transactions function as marketplace transactions, meaning that Shopify is responsible for collecting and remitting the sales tax on these sales. As a result, you don’t need to manually handle tax collection for these transactions.
How Are These Transactions Reported?
Even though Shopify handles sales tax collection, in the states where you are registered and we are filing on your behalf, we still need to report these sales to the state. However, these transactions are reported as tax-exempt so that you are not paying anything out of pocket.
Our system is designed to properly process and report these transactions, meaning no action is required from you regarding them.
How to View These Transactions in Your Filing Report
If you’d like to review these transactions, follow these steps when approving a filing:
Click the three-dot menu to the right of the "Approve" button.
Select "Download Report."
In the downloaded report, you will see transactions listed as tax-exempt—these are your Shopify "Shop" transactions.