how to pull sales tax report from shopify

hi shopify sellers this is kasheen from,ledger gurus,i am so excited to be here today and to,share with you,a couple questions that we often hear,about shopify,and sellers responsibility when it comes,to sales tax,and i'm going to walk you through how to,find the report you need,to understand sales tax obligations as,a shopify seller,before i dive in i just want to,encourage all of you to subscribe to our,channel so you get the most,updated and accurate accounting tips and,advice,okay so we have lots of clients,with um that are selling on shopify and,shopify is a great selling platform,and we get questions from them about,sales tax all the time,so before i dive into the actual report,i just want to address a couple,key questions that we've encountered a,lot so the first one is,lots of sellers are wondering if shopify,is responsible for,collecting and remitting sales tax to,different states and the answer is,no shopify is not like amazon it's not a,marketplace facilitator,so it doesn't automatically collect and,remit sales tax,to the states you have to manually set,it up yourself,and we have a video on how to do that,and you have to,determine where you have nexus and,that's where,you will need to register and report to,the states to learn more about like,determining where you have nexus and,whether you need a seller's permit,um please refer to this other video that,we've done,and leave us any questions that you,might have,okay so i'm now gonna switch over and,share my computer screen so i can walk,you through,where to download the reports and then,i'll walk you through the reports and,just a few tricks on,how to understand the report so you can,determine nexus for yourself,and use the information,on this report to do your sales tax,findings,so this is one of the shopify,accounts that one of our customers have,um,so once you log in you're gonna be on,this home screen,and next you want to go to orders and,then on this top right,you want to click on export so,depending on if you are doing a monthly,filing or you want to review a whole,year of,nexus this is where you would pick order,by date,and select the dates today is january,14th,so if i am doing the return,for december of 2020 i would want to,look at sales from december 1st,to december 31st and then i click on,export orders,for our purpose i'm gonna look at the,last quarter so in case you're a,quarterfinals,um then you want to look from october,1st,so you just click on first and then you,click on the month,and then you click on 31st and then,click on,export order and we can leave it for csv,for excel this format is great if you,want to do a nexus analysis on,all of your sales in 2020 you would go,to the same place,and click on order by date but instead,of going to october 1st,you would go all the way to january 1st,and then all the way over to december,31st,and then click on export order the file,will get,sent to the email address that's,associated with your shopify store,it might take from a few minutes to a,few hours just depending on the volume,of sale,and it might show up as multiple folders,of export this is the one that,i downloaded the first time for q4 of,2020,just for demonstration purposes and,showing you guys,how i utilize this report,um okay so this is the report,you will see once you open it from your,link,in the email and let's expand,all of these so we can go through,everything that's,on this report so we can see,the header really clearly so name is,the transaction id number and you can,see it's duplicated because,um it's by item and not in that order so,this one,uh the customer lauren she bought,one two three four five items,and we can see also on here on the item,name these are all different items but,it's all,for this one customer that's why the,transactions are repeated this many,times,so it says whether it's paid or not what,time it was paid,whether it's fulfilled or not if it is,fulfilled,this is the date where it was fulfilled,and this part is the,financial part so i want to walk through,this for sure,um the subtotal column is what the,customer,end up paying for the product and this,is net of discount so this 215,is net of the 116 discount,amount and then the subtotal plus,shipping plus tax equals,this total which is two two two nine,three,matches right here we can know that this,is,net of discount because if you go,keep going to the right there is,line item price for each of these items,and if we add them up it's 332 dollars,and 20 cents,minus the 116 will give you,the net of 215.90,okay and then if we keep going to the,right this describes the item they,bought,and the and the um pricing for each item,fulfillment status which corresponds,with,earlier what we've seen and then billing,information,um all of these for sales tax purposes,we really want to focus on the ship to,address,so shipping name shipping street,and here ships to address one two,and uh city zip,right here instead of state shopify,closet shipping province,because if it's to like an international,location,lots of other countries use province,instead of state,and country so this shift to column,column,ap is really really important when it,comes to sales tax filings because,this is showing you where the customers,are,which determines your nexus which,determines which state you're going to,file,your return to so these are everything,out on this report what we usually do,to try to analyze this report is to run,a pivot table and i'm gonna,show you that so you can see exactly how,to how to analyze this report so,a lot of these information we want to,strip them out so we're gonna add of,just a few columns um,and you can add more columns depending,on your need but we usually,would do a column to strip out the year,and month and,then we'll do a month a year combined,and it all makes sense in a little bit i,promise and then we'll do a calculated,order number because,when you want to do economic nexus,analysis you want to know how many,transactions you have,into each state on column ap year,we'll just do equal year and we'll strip,out the year from the paid act,information we'll do the same with month,and we'll do this one and then month,year we'll just combine those we'll say,we want to show that it's december,and we'll want a space in between,and then we'll put the ear on there so,it's just december 2020,then this calculated order number,will say we'll use the if function if,this,equals what's up sorry equals,what's above it then,the count is zero because if it's the,same then we don't want it to count,again,if it's not zero then it'll be one but,sometimes,we just want to make sure this always,has,a value so if this,doesn't have anything we'll say it's,zero,if it does it's one okay,just because these are our formula and,modified,columns so i usually want to highlight,them,so i know that these are formulas that i,added,and then we'll drag them down so they,apply to,all to every single order um,okay so and you can see like these ones,they don't have,they don't have one so it's using like,this date,so we'll we'll see that when we run the,pivot table,so then let's click on this little,triangle sign,we'll do insert and pivot table,use all of this range and then on here,is when we can say how do we want this,to be structured so we can analyze it so,we have month and year,so we can filter by the date we want,and then we have,financial status and a lot of our,clients,want to know information by payment,methods,so we can add payment methods on the,filter as well,one other thing we can add is shipping,country,so we can filter out transactions that,are not,us-based right here we'll just put it on,the bottom,okay so these are our filters that we,can use to manipulate data,and then on the role we'll put shipping,province,that's all the states and then we need,to put all the financial information so,we can start analyzing them,so we'll put subtotal shipping,because shipping is taxable in some,states but not other states,and then taxes we can put total as well,but that'll just be a sum of the,previous three close this,so we're not distracted so this shows,all the number,of the subtotal shipping taxes discount,code,by shipping province let's change,the format so it looks cleaner i usually,select them all,and then i just,click on this so they look cleaner and,now we can filter this to get the,information we need,so month year then we wouldn't want to,select,10 11 and 12 then we don't want to worry,about,anything that happened in september and,we know this 1,19 0 0 is really just for all the,repeated orders,so we don't need to worry about that oh,sorry,one more thing the pivot table let's,put calculated order number okay,calculated but then this we don't want,to show all the decimal points,this way okay let's go back to the,filtering so month we'll just do,the last quarter of the year and,financial status,we do not want anything that's pending,we've seen that with our clients that,sometimes when it says pending it,actually never,went through so we don't want to include,anything,pending on our analysis or when you are,fighting because,those are not transactions that actually,went through,so we want to filter our pin depending,filter out,pending just going to write notes here,and,for the month year select the month,you are analyzing,and if if we have a whole year of data,or two years of data you can show like,2020,like from january to december or you can,say 2019,that just makes it easy to see and,that's why we added these,columns and then payment method,we usually include everything,but if there's if you know that like for,example some of our clients,will want us to exclude manual orders,so if you want to do that you can select,all but then unselect manual but in this,scenario we'll just leave all of them,and then shipping country,this is when we will just select,us so then we don't see all,all the other abbreviations that we are,not familiar with,select us okay so now it's,a lot clearer to me now we'll talk about,arizona,so arizona sold thirty eight thousand,and ninety five dollars,and collected shipping cost of this much,and collected tax of this much over 414,transactions,and this is what you need to remit to,the department of revenue in arizona,and you can see like some of them don't,have tax,collected and some do and this is,all depending on your tax setting,because this business has determined,that they have nexus in arizona,california,um hawaii illinois indiana,all of these states so they turned on,the tax collection setting,in their shopify settings and that's why,they are,collecting tax on in these states,if instead of fighting for utah i want,to know,if i pass the economic nexus in utah,from my shopify sales,i look at it and i know utah's threshold,is hundred thousand dollars in sales or,200 transactions let's pretend this is a,year of data,so i know uh 50,000 is not passing the threshold because,it's less than a thousand,a hundred thousand but 573,transactions is more than 200,transactions so i definitely,passed the threshold for utah and i,should consider register and remit in,utah,um this business um this is just for a,quarter so if we time that by four,they sell about 200k in utah they've,passed the threshold,and that's why they're collecting tax in,utah and this just shows a total of this,period,of how much you've collected and at the,end of the day you need to remit,this 27 000 to all these,different states that you've collected,tax and if i want to change it i want to,say,oh i just want to see how much i,collected in december,then you can just change the filter and,everything,will change accordingly that's how,you go from this document add some,calculated,columns and then run a run a pivot table,to give you more specific information,on your sales tax one thing i do,want to note before we exit out,is to show you guys that there's a,caveat,to the orders report because if you go,to,analytics and go to report and then,there,is finances go to finance summary,you can see here there's a returns,so at ledger gurus we also download,the returns report to net it against,the orders report so you get a more,accurate,number of how much you actually sold,net of returns but this return,has some limitations because it doesn't,show returns by state so we usually do,um some manipulation and we create a,custom reports,to help us with that portion as well um,so if you want it to be more accurate,reach out to us,and we can for sure help you with that,and we can,show you individually because every,shopify account is different,some can create a custom report some,can't that's why i'm not gonna show,that process on this video but feel free,to reach out to us,if you want to understand the returns,portion and we're happy,to show you okay that was a lot of,information,and i totally understand if you guys,have questions or a little bit confused,so please just comment below and ask us,anything,that you did not understand or need,clarifications on,and if you have any other sales tax,questions we just barely updated our,white paper on 10 steps how um,it's called 10 steps on sales tax so it,doesn't burn down your business and i'll,put that link,in the notes as well so you can always,go back and refer,there again uh comment,on the video if you have any questions,like the video,and subscribe to our channel and i look,forward to talk to you soon,bye

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