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General guidelines for tax exemptions and charges on Shopify billing in North America

If you live in a region where Shopify is required to charge taxes on any of your account charges, then these charges display on your Shopify invoice.

This page covers managing taxes for your Shopify store, including understanding your tax responsibilities, applying for tax exemptions, and navigating specific taxation requirements in the United States (US) and Canada.

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Understanding your tax responsibilities as a merchant

You're responsible for all taxes related to your subscription or purchase of Shopify's products and services. These taxes are calculated using the billing address you provide and are charged to your authorized payment method. If you move to a new area, then you need to update your location in your Shopify admin.

You must also handle all tasks related to calculating, collecting, withholding, reporting, and paying any taxes, duties, fees, or extra charges that result from sales in your Shopify Store or from using the Services. Refer to the Payment of Fees and Taxes section of the Shopify Terms of Service and Tax overrides and exemptions for more information.

How Shopify determines your tax rate

Shopify determines the taxes charged on your invoices based on your store's billing address. If you notice unexpected taxes on your invoice, then verify that your billing address is accurate and up to date. Learn how to change your store address.

Viewing your Shopify invoices and tax charges

You can review your invoices directly in your Shopify admin to understand the taxes charged on your account. Invoices contain a breakdown of all charges, including any applicable taxes. Learn how to view your upcoming and past Shopify bills.

You can also export your billing history to keep records for your tax filings.

Tax exemption eligibility and requirements

If you're exempt from paying taxes related to your subscription or purchase of Shopify's products and services, then you must provide Shopify with proof of your tax-exempt status. Eligibility requirements and required documentation vary by country and region.

Who qualifies for a billing tax exemption

Shopify can offer billing tax exemptions for the following types of organizations in the United States and Canada:

  • Registered non-profit organizations (501(c)(3) in the United States)
  • Government entities
  • Indigenous Peoples and First Nations bands in Canada (with specific requirements)
  • Other organizations with valid tax-exempt status from their state or provincial tax authority

Required documentation by region

The documentation required for a tax exemption varies by region. You can reach out to Shopify Support to find out what documentation is required in your case.

Countries where you can enter your tax number to activate tax exemption in billing settings

In the following countries, you can enter your tax details directly in your Shopify admin to obtain a tax exemption without contacting Shopify Support:

Add your tax number for a billing tax exemption

If you're in a country that supports adding your tax registration number, then you can add it directly in your Shopify admin.

Steps:

  1. From your Shopify admin, go to Settings > Billing.

  2. In the Billing information section, click Edit.

  3. Enter your tax registration number in the appropriate field (such as ABN, IRD, or VAT number).

  4. Click Save.

Your tax exemption takes effect on future invoices after your number is verified. The exemption doesn't apply retroactively to past invoices.

Countries where tax exemption applications on Shopify are unavailable

Currently, Shopify doesn't offer tax exemption status for VAT or Goods and Services Tax (GST) to merchants in the following countries:

  • Ireland: Merchants in Ireland can't apply for tax exemption status for VAT charged on their Shopify bills.
  • South Africa: Merchants in South Africa don't have the option to obtain tax exemption status for VAT charged on their Shopify bills.
  • Singapore: Merchants in Singapore can't apply for tax exemption status for GST charged on their Shopify bills.
  • Switzerland: Merchants in Switzerland can't request tax exemption status for VAT charged on their Shopify bills.

How to apply for a tax exemption on Shopify billing

For merchants in the United States and Canada, the tax exemption application process requires contacting Shopify Support. Before you begin, gather all required documentation to ensure faster processing.

Preparation checklist for tax exemption requests

Before contacting Shopify Support to request a tax exemption, gather the following documents:

  • Your completed state or provincial tax exemption certificate
  • Your business registration documents
  • Your EIN (United States) or business number (Canada)
  • Any additional state-specific forms required by your jurisdiction
  • Confirmation that your organization's name on the exemption documents matches your Shopify account information

Tax exemption application process

After you've gathered your documentation, follow these steps:

  1. Contact Shopify Support with your completed tax exemption documentation attached.
  2. Include your store URL and a brief description of your exemption request.
  3. Wait for Shopify Support to review and process your exemption. This process can take up to 2 weeks to complete.
  4. Receive confirmation by email when your exemption has been applied.

What happens after your exemption is approved

After your tax exemption is approved:

  • Future invoices won't include the applicable taxes.
  • The exemption doesn't apply retroactively to past invoices.
  • You may need to renew your exemption if your certificate has an expiration date. Shopify will notify you when an existing exemption is about to expire.

What happens if your exemption isn't approved

If your tax exemption request isn't approved, then Shopify Support will contact you with the reason. The following situations may result in an exemption request being denied or requiring additional action:

  • Incomplete documentation: If your form is missing required information (such as signatures, dates, the "blanket" checkbox, or seller details), then you'll be asked to provide corrected documentation and can resubmit your request.
  • Expired certificate: Some states have expiration rules for exemption certificates. If your certificate has expired, then you'll need to obtain a new certificate from your state tax authority.
  • Ineligible exemption reason: Each state has specific rules about which exemption reasons qualify. For example, resale exemptions don't apply to Shopify subscription fees because the service is used to run your business, not resold.
  • State doesn't offer exemptions: Some states, such as Hawaii (for subscription fees) and South Carolina, don't offer billing tax exemptions that apply to Shopify subscriptions.

If your exemption is denied due to incomplete or incorrect documentation, then you can resubmit your request after obtaining the correct documents from your state or provincial tax authority.

Specific tax responsibilities for Shopify subscriptions in the United States and Canada

If your business is located in a Canadian or American jurisdiction where Shopify has a business presence, then Shopify is required by law to charge applicable taxes on your subscription. Shopify charges taxes only where required to do so by the tax authorities of your jurisdiction. These taxes are related to your Shopify subscription and aren't influenced by the products or services you sell.

Manitoba Retail Sales Tax (Canada)

Effective January 1, 2026, Manitoba Retail Sales Tax (RST) applies to cloud computing services. As a result, Shopify is required to charge 7% Manitoba RST on applicable Shopify charges for merchants that have a billing address or shipping address in Manitoba.

If your Shopify bills a Manitoba address, then the 7% RST displays as a separate tax line item on your invoice.

US states and districts mandating Shopify to collect sales tax

Shopify is a Canadian company operating in Canada with a sales tax collection requirement in the following US states and districts.

If your store is located in Canada or in any of the listed states or districts, then your subscription might be charged applicable taxes, such as harmonized sales tax (HST), provincial sales tax (PST), goods and services tax (GST), state tax, county tax, or municipal tax.

If your store is located outside of Canada or the states and districts where Shopify has a tax collection requirement, then taxes shouldn't be applied to your subscription charge.

The taxes display on a separate line in your bill. You can also view a taxes calculation based on your location.

List of US states and districts where Shopify is obligated to collect sales tax

US states and districts mandating Shopify to collect sales tax
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Connecticut
  • Colorado
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Nebraska
  • Nevada
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington, D.C.
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

US states with taxes on shipping labels

Shipping labels bought in the Shopify admin are taxable in certain US states. If you have a tax-exempt status in these states, then you may be eligible for a shipping label tax exemption, including resale exemptions. Learn more about taxes on shipping labels.

Troubleshooting common billing tax issues

Use the following information to diagnose and resolve common issues with billing taxes.

Troubleshoot unexpected tax charges on your invoice

If you notice taxes on your invoice that don't match your current location, then review the following factors:

  • Business address history: Taxes are calculated based on your billing address at the time the invoice was generated. If you recently moved, then your previous address may have been used for earlier invoices.
  • Shipping label taxes: Canadian merchants may see provincial taxes (such as QST) on their invoices for shipping labels purchased for customers in other provinces. US merchants may see taxes on shipping labels when shipping within certain states.
  • Address verification: Confirm that your current billing address in Settings > Billing is correct.
Troubleshoot tax exemption not appearing on invoices

If your tax exemption isn't reflected on your invoices, then review the following factors:

  • Processing time: Tax exemptions can take up to 2 weeks to process after you submit your documentation.
  • Effective date: Exemptions apply to future invoices only. They don't apply retroactively to invoices generated before your exemption was approved.
  • Self-serve regions: If you're in a country that supports adding your tax number (such as Australia or New Zealand), then verify that you've entered your tax registration number in Settings > Billing > Billing information.
  • Expiration: If you had an existing exemption, then verify that it hasn't expired. Shopify notifies you when an exemption is about to expire.
Troubleshoot incorrect tax rate on invoice

If the tax rate on your invoice seems incorrect, then review the following factors:

  • Combined tax rates: In some jurisdictions, your invoice may include multiple tax components (such as state, county, and municipal taxes in the United States, or GST and PST in Canada).
  • Rate changes: Tax rates can change due to government policy updates. The rate charged reflects the applicable rate at the time of billing.
  • Address accuracy: Verify that your billing address is entered correctly, as tax rates vary by specific location.
Troubleshoot reseller exemption requests

Shopify can't provide tax exemptions on the basis of resale for subscription fees. Resale exemptions apply when you purchase an item with the intention of reselling that same item. Since Shopify's services are used to run your business and aren't being resold, resale exemptions don't apply.

The exception is shipping label taxes in certain US states (Arizona, District of Columbia, Hawaii, New Mexico, and West Virginia), where resale exemptions may be accepted.

Requesting tax documents from Shopify

Shopify can provide certain documents to assist with your tax filings. Understanding what documents are available and how to request them helps you prepare for tax season.

Documents available from Shopify

The following tax-related documents may be available upon request:

  • Fiscal residency certificate: Confirms Shopify's tax residency status in relation to your country. This document helps prevent double taxation when a tax treaty exists between your country and the country from which Shopify bills you.
  • W8-BEN-E form: Available for US merchants who need to document Shopify's foreign status for tax purposes.
  • Form 10F or No Permanent Establishment certificate: Available for merchants in India who need documentation confirming that Shopify has no permanent establishment in India.

What documents you can access in your Shopify admin

The following billing information is available directly in your Shopify admin without contacting Shopify Support:

  • Invoices and billing history: View and download past invoices from Settings > Billing.
  • Payment records: Review payment history and methods on file.

Request a fiscal residency certificate or other tax document

If you need a fiscal residency certificate or other tax documentation from Shopify, then contact Shopify Support with the following information:

  • The type of document you need
  • The year(s) you need the document for
  • Your country of residence
  • Whether you need an original, stamped document (some tax authorities require physical copies)
  • Your mailing address (if a physical document is required)

Processing times vary depending on the document type and the tax authority involved. Fiscal residency certificates requested through the Canada Revenue Agency can take 8 to 10 weeks to process, while documents from other jurisdictions may arrive more quickly.

Shopify Tax transaction fees

Tax transaction fees are applied to applicable orders using Shopify Tax and are charged separately from your Shopify subscription. Shopify Tax is available to all merchants that sell to customers in the United States, European Union, or United Kingdom. Learn more about Shopify Tax transaction fees.

Frequently asked questions

Can I get a refund for taxes charged on past invoices?

Shopify can't refund taxes charged on past invoices if the taxes were correctly calculated based on your billing address at the time. It's your responsibility to ensure that your billing information is accurate. If you believe taxes were charged in error, then contact Shopify Support to review your specific situation.

How long does the tax exemption process take?

After you submit your tax exemption documentation, Shopify Support reviews and processes the exemption. This process can take up to 2 weeks. You receive confirmation when your exemption has been applied. Incomplete documentation may result in delays.

Do I need a separate exemption for each US state?

Yes. Tax exemption certificates are issued by individual states, so you need to provide a valid exemption certificate for each state where you want to be exempt from taxes on your Shopify billing. Each state has its own form and requirements.

What documents can I get from Shopify for my tax returns?

You can access your invoices and billing history directly in your Shopify admin from Settings > Billing. For additional tax documents such as fiscal residency certificates or W8-BEN-E forms, contact Shopify Support with details about the specific document you need and the tax year(s) it covers.

When should I consult a tax professional instead of contacting Shopify Support?

Contact a tax professional for the following situations:

  • Advice on whether you qualify for tax exemptions in your jurisdiction
  • Guidance on how to properly file your taxes
  • Questions about your specific tax obligations
  • Interpretation of tax laws and regulations
  • Strategic tax planning for your business

Contact Shopify Support for the following situations:

  • Questions about how to submit your tax exemption documentation
  • Requests for specific tax documents from Shopify
  • Questions about charges on your Shopify invoice
  • Technical assistance with your billing settings

Before you contact Shopify Support

Before reaching out to Shopify Support, gather the following information to help resolve your issue faster:

  • The invoice number(s) affected (found in Settings > Billing)
  • Screenshots of the tax line items on your invoice
  • Your current billing address and any recent address changes
  • Your tax exemption certificate or documentation (if applicable)
  • Your organization's EIN (United States) or business number (Canada)
  • For exemption requests: confirmation that your organization name on exemption documents matches your Shopify account
  • Steps you've already tried for troubleshooting

Having this information ready helps Shopify Support assist you more efficiently.