Seamless Transition from AvaTax to Shopify Tax for Merchants

Understanding the transition from AvaTax to Shopify Tax, including what has changed and how it affects Shopify Plus merchants.
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Executive summary:

  • Transition from AvaTax to Shopify Tax.
  • Impact on tax settings and customer exemptions.
  • Targeted for Shopify Plus merchants in the US.

What changed

Shopify has deprecated the AvaTax app and migrated eligible US merchants to Shopify Tax, ensuring a smoother, more integrated tax handling system within the Shopify ecosystem.

Why it matters

Merchants benefit from improved tax compliance, streamlined tax administration, and potentially reduced costs associated with third-party tax services.

Role-specific impact

  • Marketers: Enhanced compliance simplifies marketing across different regions without worrying about tax discrepancies.
  • Developers: Fewer integrations to maintain with a more robust internal tax system now in place.
  • Store admins: Easier management of tax settings, product tax codes, and customer exemptions directly within Shopify.

Implementation checklist

  1. Verify tax settings in Shopify Tax to ensure they reflect your previous configurations with AvaTax.
  2. Review customer exemptions and product tax codes for accuracy.
  3. Stay updated on further notifications from Shopify regarding tax compliance.

Resources

Refer to the Shopify Tax Manual for detailed information on managing your tax settings.

Need guidance? Talk to Makro.

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