Why Shopify’s Shop App Charges Sales Tax | TaxValet

But here’s the key: if the order flowed through the Shop App, Shopify is acting as a marketplace facilitator—and that changes how sales tax is handled.

Let’s walk through what that means, why Shopify may be collecting tax on your behalf, and how to know whether you still need to register or file.

What Is the Shopify Shop App—and How Does It Affect Sales Tax?

The Shop App is Shopify’s mobile shopping experience that allows customers to browse, track, and re-order from thousands of Shopify-powered stores. When a customer checks out through the Shop App, the sale is handled a bit differently than if it came through your standard Shopify storefront.

That’s because, in this case, Shopify is the one facilitating the sale—and for tax purposes, it’s required to act as a marketplace facilitator in all states that have sales tax.

That means:

• Shopify is responsible for calculating and collecting sales tax on the Shop App order
• Shopify remits that tax to the state on your behalf
• Shopify handles the filing responsibilities for those transactions

📌 Important: this only applies to sales made through the Shop App. If someone checks out on your Shopify online store, you're still the one responsible for tax collection and filing.

🧾 Shopify’s Marketplace Facilitator Tax Guide

Why You Might See Unexpected Sales Tax Charges

If you're not registered for sales tax in a state but notice tax charged on an order, there’s a good chance it came through the Shop App.

This isn’t a bug—and Shopify isn’t collecting tax randomly. It’s fulfilling its legal responsibility under marketplace facilitator laws. These rules vary by state but generally require large platforms like Shopify (or Amazon, Etsy, etc.) to collect and remit sales tax when they facilitate the sale through a marketplace-like experience.

That’s why tax may appear on a Shop App order—even if you’re not registered in that state.

Do You Still Need to Register for Sales Tax on Shopify?

Maybe. It depends on a few key factors.

Just because Shopify collects and remits sales tax through the Shop App doesn’t mean you’re off the hook entirely. You may still need to register if:

1. You have economic nexus or physical presence in a state
2. You’re making sales through non-marketplace channels (like your Shopify online store)
3. You’re collecting tax yourself, which means you’re responsible for filing
4. A state requires you to report marketplace sales separately—even if Shopify remits them

It all depends on the big picture: your sales volume, your channels, where your employees and warehouses are based, and where you’ve triggered tax obligations.

Why We Need Marketplace Sales Data for Sales Tax Reporting

Even when Shopify (or any marketplace) collects and remits sales tax, some states still expect you to report those marketplace sales—especially if you're registered in that state.

This is why TaxValet asks for access to your marketplace data. It allows us to:

• Accurately track and report all your sales activity
• Evaluate where you have nexus, as many states include marketplace sales in their economic nexus thresholds
• Distinguish between your own taxable sales and those collected by Shopify for Shop orders
• Ensure filings are complete, accurate, and state-compliant

It’s not just about Shopify’s responsibility—it’s about making sure your returns match what platforms are doing on your behalf.

Shopify Sales Tax Got You Spinning? Let TaxValet Handle It All.

Whether you're selling through Shopify’s Shop App, your online store, or other channels, tax compliance can get complicated fast.

At TaxValet, we don’t just file returns—we take sales tax off your plate entirely.

We’ll help you:

• Identify where you have nexus and need to register
  
  
• Review and manage your Shopify online store tax settings
  
  
• Track and report your sales across all channels, including marketplace transactions
  
  
• File accurate, on-time returns in every state where you're responsible
  

Ready for peace of mind and full-service compliance?

👉 Reach out to our team today—we’ll take it from here.