Connecting TaxCloud to Shopify

Connect TaxCloud to Shopify to automatically import orders, track sales collected in each taxing jurisdiction, and simplify the filing process.

How the Integration Works

The TaxCloud integration for Shopify works in conjunction with Shopify's sales tax engine:

• Shopify calculates sales tax for orders.
• TaxCloud captures fulfilled orders for reporting and filing.

Shopify Tax Settings

Shopify has its own built-in sales tax collection engine, with multiple tax services to choose from. Select and configure a tax service that is supported by Taxcloud and best fits your needs:

You can set up sales tax collection in Shopify by visiting Settings > Taxes in your Shopify account. For guidance on configuring sales tax, you can refer to the following resources:

• Setting up sales tax in Shopify
• Shopify Tax Manual

Shopify Order Import in TaxCloud

TaxCloud imports the latest fulfilled Shopify orders once a day. The imports take place in the early morning before typical business hours.

• TaxCloud processes returns at the end of the month.
• Nexus data displayed on the thresholds page in TaxCloud is updated at the end of each month. We pull in order data for all states, even if collection is not enabled, so that we can keep you informed of your proximity to the economic threshold across all states and territories.

Examples:

• If I go live on March 1 at 9:00 PM CST, my first order import will begin in the early morning on March 2. On March 2, the latest orders fulfilled from Shopify will be visible in TaxCloud.
• If an unfulfilled order placed in April is marked fulfilled at 9 a.m. CST on March 3, I can expect that order to be imported in the early morning on March 4.
• If I process a return for one of those orders on March 5, the return transaction will be imported into TaxCloud on March 31.

Before you begin

Set up TaxCloud

• Make sure you have a TaxCloud account and can sign in. If you don’t have an existing TaxCloud account, sign up now.
• If you have a previous version of the TaxCloud app for Shopify installed, uninstall it first.

Configure Shopify Tax Settings

Make sure your Shopify account is configured to collect sales tax.

Verify Product Categorization in Shopify

Shopify and TaxCloud both use the category information on your Shopify products to help determine the appropriate tax rates. Knowing what the product is helps determine if there are any special exemptions or rates to apply.

To ensure tax calculations are correct, review your product catalog to confirm that the selected Categories are accurate.

Step 1: Complete TaxCloud setup

Your TaxCloud account must be set up so that the integration with Shopify works correctly.

1. Sign into TaxCloud.
2. Complete your TaxCloud Business Profile.
3. Set up your locations and states.

Step 2: Add the Shopify integration to TaxCloud

1. From the TaxCloud app, go to the Integrations page.
2. Click Connect.

3. Click Shopify in the integrations list.

   

4. Click Connect. The TaxCloud app listing opens in the Shopify app store.

5. Click Install.

   

6. Sign into your Shopify account.

7. Click Install to confirm that you want to install the TaxCloud app in your Shopify account.

   

A Shopify integration is automatically added to your taxCloud account.

Step 3: Set the integration live

When you're ready to start capturing transactions, you can set the integration live in TaxCloud. After this point, Shopify transactions will be included in reporting and tax remittance. 

1. From the TaxCloud app, go to the Integrations page.

2. Click the Shopify connection.

   

3. In the top right corner of the page, click Go Live, then confirm your choice.