Shopify Tax Compliance: The Complete Guide to Automating VAT & Sales Tax

Modified on Wed, 18 Feb at 9:33 PM

Selling internationally with Shopify? Managing tax compliance across multiple countries can quickly become overwhelming. From EU VAT to US sales tax, the rules are complex—and getting them wrong can mean penalties, audits, and lost time.


Taxually's Shopify integration automates your entire tax compliance workflow, from data collection to filing returns in 100+ countries.


The Challenge: Tax Compliance for Shopify Sellers


If you're selling across borders with Shopify, you've likely faced these challenges:


Multiple Tax Jurisdictions

Every country—and in places like the US, every state—has different tax rules:

  • EU VAT with varying rates (17–27%) across 27 member states
  • UK VAT post-Brexit with new import rules
  • US sales tax across 45+ states with different thresholds
  • Canadian GST/HST/PST varying by province

Manual Data Export is Time-Consuming

Without automation, you're stuck:

  • Exporting CSV files from Shopify
  • Reformatting data for each tax authority
  • Manually calculating tax liabilities
  • Tracking refunds and adjustments

Compliance Deadlines Never Stop

Miss a filing deadline and you face:

  • Late filing penalties
  • Interest charges
  • Potential audits
  • Suspended selling privileges in some marketplaces


The Solution: Automated Tax Compliance for Shopify


Taxually connects directly to your Shopify store and handles everything automatically.


How It Works

  • Connect in Minutes: Install our free Shopify app, click connect, and authorise access. No developer required.
  • Automatic Data Sync: Your orders, refunds, and shipping charges sync automatically each month. No manual exports.
  • Intelligent Tax Calculation: Our tax engine determines the correct VAT or sales tax treatment for every transaction based on customer location, product type, your business setup, and current tax rates.
  • Multi-Country Filing: We prepare and file your returns directly with tax authorities in 100+ countries.


Key Features for Shopify Sellers


Automatic Data Synchronisation

Your Shopify transaction data flows directly into Taxually:

  • Orders with full line-item detail
  • Refunds linked to original orders
  • Shipping charges tracked separately for accurate reporting
  • Multiple currencies handled automatically
  • Ship-from location for accurate tax determination

100+ Countries Supported

One platform for all your tax obligations:

  • European Union (all 27 member states)
  • United Kingdom
  • United States (sales tax nexus states)
  • Canada
  • Australia
  • And 70+ more countries

Multi-Store Support

Selling from multiple Shopify stores? Connect them all:

  • Link unlimited stores to one Taxually account
  • Assign each store to the correct legal entity
  • Consolidated reporting across all stores

Fulfilment Location Tracking

Critical for accurate tax compliance:

  • Automatically captures your ship-from country
  • Supports Shopify's multiple fulfilment locations
  • Essential for determining correct VAT treatment on cross-border sales

Complete Transaction Visibility

Full audit trail for every transaction:

  • Original order details preserved
  • Date tracking (created, processed)
  • Billing and shipping addresses
  • Line-item breakdown

Secure & Compliant

Your data is protected:

  • Read-only API access (we can't modify your store)
  • Encrypted data transmission
  • GDPR compliant
  • SOC 2 certified infrastructure
  • Shopify App Store certified


Who Is This For?


Taxually's Shopify integration is designed for:


Business TypeUse Case
International sellersSelling to customers in multiple countries
EU-based merchantsManaging VAT across member states
US sellers with nexusSales tax compliance in multiple states
DropshippersComplex supply chains with multiple fulfilment locations
Multi-store operatorsConsolidated compliance for multiple brands
Shopify Plus merchantsEnterprise-level tax compliance automation
Accountants & agenciesManaging tax for multiple Shopify clients


Shopify Tax Compliance FAQs


How long does it take to connect my Shopify store?

Most merchants complete the connection in under 5 minutes. Simply install the Taxually app from the Shopify App Store, click connect, log in to Taxually, and select your company.


Do I need technical knowledge to set this up?

No. Our app handles everything automatically through Shopify's secure authentication. There's no need to configure API keys manually or write any code.


What Shopify data does Taxually access?

We access order and refund data including: transaction amounts, dates, customer addresses (for tax determination), product details, and fulfilment locations. We do not access payment card details or customer passwords.


Can I connect multiple Shopify stores?

Yes. You can connect unlimited Shopify stores to your Taxually account. Each store can be linked to the same or different legal entities.


How often is data synced?

Data is automatically synced monthly (typically in the first week of each month for the previous month's transactions). Manual syncs can be requested for specific date ranges.


What if I sell on Shopify AND Amazon/eBay?

Taxually supports multiple sales channels. Connect your Shopify store alongside Amazon, eBay, WooCommerce, and other platforms for consolidated tax compliance.


Is the Shopify app free?

Yes, the Taxually Shopify app is free to install. Taxually subscription plans are based on your transaction volume and filing requirements.


What happens to my historical data if I disconnect?

All previously synced data remains in Taxually. Only future automatic syncs will stop. You can reconnect at any time by reinstalling the app.


Does Taxually work with Shopify's native tax features?

Yes. Taxually complements Shopify's tax calculation features. While Shopify helps you collect the right tax at checkout, Taxually handles the filing and compliance side—ensuring you submit returns to the correct authorities on time.


Getting Started


Step 1: Create Your Taxually Account

Sign up for free at app.taxually.com and complete the quick onboarding to set up your company.

Step 2: Install the Shopify App

Find Taxually in the Shopify App Store and install it on your store.

Step 3: Connect Your Store

Open the Taxually app, click "Connect to Taxually", log in, and select which company to link.

Step 4: Relax

Your transactions will automatically sync each month. We'll handle the tax calculations and filings.


Why Choose Taxually for Shopify Tax Compliance?


FeatureTaxuallyManual Process
Data collectionAutomaticHours of exports
Tax calculationAI-powered, 100+ countriesError-prone spreadsheets
FilingDirect to authoritiesManual submissions
Multi-storeUnlimited connectionsSeparate processes
Fulfilment trackingAutomatic ship-from captureManual tracking
UpdatesAutomatic rate changesConstant research
SupportDedicated tax expertsYou're on your own


Ready to Automate Your Shopify Tax Compliance?


Stop spending hours on tax administration. Connect your Shopify store to Taxually and let us handle the complexity.


Questions? Contact our team or book a demo.

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