No, Shopify does not submit or remit sales taxes on your behalf. But it can help you figure out, collect, and pay sales tax by giving you built-in taxation options and detailed sales reports, which you can access from your dashboard.
Unlike Amazon or eBay, Shopify is not a “marketplace facilitator,” which exempts it from marketplace facilitator laws. The law obliges retailers like Amazon or eBay to collect and remit sales tax on behalf of their sellers.
So, it is up to the Shopify seller to send the sales tax to the right states.
And, as a merchant, you must decide whether to charge sales tax before you start selling. You may be required to register with several taxing authorities in your country and the target market. Then, via Shopify, you can configure your taxes to ensure that you charge the exact rates everywhere you sell.
Shopify uses many default sales tax rates that are periodically updated. If you utilize the default rates, you must ensure they are updated and proper for your specific circumstances. You can override them at any time.
Further, you can use your sales report to generate data and calculate the taxes you need to pay. You can also use sales tax apps like Taxjar to automate tax calculation and filing on time.
Simply put, Shopify does not handle your taxes. As a business owner, it is your obligation to ensure that you comply with all tax rules and regulations. This means getting sales tax from customers and sending it back to the government. It also means paying any other taxes that apply to your business.