Shopify orders did not collect tax and is an e-commerce platform that lets merchants sell online but doesn't handle sales tax like marketplaces such as Amazon or Etsy. Instead, each merchant is responsible for setting up tax settings, collecting, and remitting sales tax themselves.
Since tax laws vary by region and change frequently, Shopify doesn't act as a tax remittance service. While it offers tools to calculate taxes, merchants must input tax IDs and ensure compliance.
Many merchants have been caught off guard, assuming Shopify handled taxes. To stay compliant, understand your tax obligations and double-check if taxes aren’t being collected when expected.