This guide walks you through setting up your Shopify store with our Reach entities and embedded solution, which includes powerful features, such as:

• Our true localization leads to higher conversions and lower fees.
• Complete global tax compliance with automatic collection and remittance.
• Flexible global scaling without the stress.

Reach plugs into your existing Shopify storefront and unlocks the next level of your global business.

Step 1. Enable support for markets in the Test Drive

You must enroll in Test Drive markets for the Shopify multi-entity solution.

1. Sign in to Shopify.

2. Click Markets, then click Enable Markets in Test Drive.

   

3. In the Organization section, select Feature test drives.

4. Locate the new Markets test drive section.

5. Click Activate feature on Stores.

6. Select the stores you want to activate the new Markets experience on.

   

7. Click Save.

Step 2. Activating Reach in Shopify

Complete the steps below to configure a Reach business (selling) entity for each market you're selling into.

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Important

Do not begin these steps until the scheduled go-live call with Reach. Your Reach representative will securely provide you with business details, account representative information, government identification, and any business and ownership documents that Shopify requires.

Step 2a. Add or change a business entity

Under Add business entity, complete the required information. Reach will provide business details, account representative information, government identification, business documents, and ownership documents. Your Reach account representative will securely supply this information as needed.

1. Click Settings in the lower left corner.

2. Click Organization. in the navigation pane.

3. Enter the organization's name provided by your Reach representative in the Organization name field.

   

4. Under Business entities, choose one of the following options:

   • To add a new business entity, follow these steps:

     1. Click Add.

        

     2. Select the country where your business operates (where your customers are) from the Select dropdown list.

        

     3. Under How this business is registered?, select Registered.

        

     4. Select the business type option from the What type of business are you operating? dropdown provided by your Reach representative. The options in this list vary depending on the country you selected in step c.

        

   • To change a business entity:

     1. Click the entity under Business entities.

        

     2. Click the edit icon.

        

5. Enter the registered business name provided by your Reach representative in the Registered business name field.

   

6. Under Business entity address, enter the street address provided by your Reach representative in the Address field and verify that the remaining address fields are correct.

   

7. Click Save.

   

Step 2b. Add people

To add the account representative for this business entity, follow these steps:

1. Under People, click Add to add an account representative.

   

2. Choose one of the following options:

   • If an account representative exists, select the account representative from the Add dropdown list.

     

   • If no account representative exists, click Add new person from the Add dropdown list and complete the fields using the information provided by your Reach Representative. Note that you only need to provide this information when you create your first business (selling) entity. For each additional business entity, select the account representative you made for the first business entity.

3. When finished, click Save.

   

Step 2c. Add government identifications

To add the required government identifications, follow these steps:

1. Under Government identifications, click Add government identifications.

2. Select an identification type from the Identification type dropdown list. Your Reach representative will indicate which types to select. Note that the identification type varies based on the country/region associated with the business (selling) entity.

   

3. Enter the number in the Identification number field.

4. Click Save.

5. Repeat steps 1 through 4 for each additional identification type.

Step 2d. Add documents

To add the business and ownership verification documents for the business (selling) entity, follow these steps:

1. Under Documents, click Add document.

2. Choose a documentation type from the Documentation type dropdown list. Your Reach representative will indicate which types to select. Note that the documentation type varies based on the country/region associated with the business (selling) entity.

   

3. Click Add file, select the file, and then click Done. Your Reach representative will provide the required documents.

   

4. Repeat steps 1 through 3 for each additional identification type.

Step 3. Routing markets to entities

To create a market for each region you're selling into and map that traffic to the correct business entity (selling entity), follow these steps:

1. Return to your Shopify store's Home page and click Markets.

   

2. Click Create market.

3. From the New market page, enter the market's name in the Name field and click Add condition.

   

4. Select the checkbox next to each country where the market will sell, and click Done.

   

5. To route the market to a business entity created earlier, click Business entity and select the appropriate business entity from the list. For example, if you have a separate entity for each region, select the one corresponding to this market.

   

   The business entity associated with this market appears under Customized.

   

6. Click Taxes and duties and select the appropriate option. Your options are:

   • Dynamic tax display: Select this option if you want Shopify to include or exclude taxes based on the customer's region. This means that customers will see the final price with or without taxes, depending on where they are.

   • Show as included: Select this option for tax-inclusive countries. This means that the price shown to the customer already includes the applicable taxes.

   • Show as line item: Select this option for tax-exclusive countries.

     

7. Click Save. After saving, you're ready to accept payments through this selling entity.

8. Repeat 2-7 for each additional selling entity.

Step 4. Add the bank account

Adding the bank account

1. Click Payments, and then click Shopify payments.
2. Click Add Shopify Payments account.
3. Select a business entity from the Connect to a business entity list and click Continue.
4. Enter the bank account information provided by your Reach representative and click Save. The required bank account information for each country/region is provided below.
5. Repeat steps 2 through 5 for each additional business (selling) entity.

Australia

Canada

For Canada, provide the following information and click Complete account setup to accept the terms and conditions.

Required information	Description
Statement descriptor	Provide the name you want to appear on your customers' credit card statements when they purchase a product from your store. This descriptor should match the one you provided in the onboarding request. This name will help customers identify the charge and reduce chargebacks due to unrecognized transactions. The format for the statement descriptor is RCH-[your descriptor], where your descriptor must be from 2 to 19 characters in length.
Phone number	Provide your company's business phone number. Customers can call this number if they have questions about a charge on their credit card statement.
Your funds will be deposited in this bank account	Select Canada from the dropdown list.
Transit number	Enter the 5-digit transit number that identifies the branch for Reach's financial institution. Reach will provide this information.
Institution number	Enter the 3-digit institution number identifying Reach's financial institution. Reach will provide this information.
Account number	Enter the 7-digit account number identifying Reach's bank account. Reach will provide this information.
Payout currency	Select CAD from the dropdown list.

The European Union

For the European Union, provide the following information and click Save. By clicking Save , you agree to accept the terms and conditions.

Required information	Description
Routing number	Enter the 9-digit routing number provided by your Reach representative.
Account number	Enter a 5 to 9-digit identifier for Reach's bank account. Reach will provide this information.
Payout currency	By default, this field should display Euro (EUR €).
IBAN (International Bank Account Number)	Enter the IBAN number provided by your Reach representative.

The United Kingdom

For the United Kingdom, provide the following information and click Save. By clicking Save, you agree to accept the terms and conditions.

Required information	Description
Sort code	Enter the 6-digit number that identifies Reach's bank and branch provided by your Reach representative.
Account number	Enter the 5 to 9-digit number that identifies Reach's account provided by your Reach representative.
IOSS VAT certificate	Enter the IOSS VAT number provided by your Reach representative when required.

The United States

For the United States, provide the following information and click Save. By clicking Save, you agree to accept the terms and conditions.

Required information	Description
Account owner name	Enter the name of the selling entity provided by your Reach representative.
Routing number	Enter the 9-digit routing number provided by your Reach representative.
Account number	Enter the 8 to 12-digit account number provided by your Reach representative.

Contact Support message

When you add a bank account and click Save, the following message will appear:

Don't worry when presented with this message. Shopify will hold payouts while it verifies the new account, but shoppers can still seamlessly check out and complete their purchases. This verification process ensures your account's security without disrupting your shopping experience.

Step 5. Update the name on the billing statement

1. Click Payments in the left navigation.

2. Under Customer billing statement, add RCH between SP and your shop name, legal entity name, or DBA name. The name of the statement appears on the customer's billing statement.

   

3. Click Save.

Step 6. Turn on the Avalara Tax Compliance app

Step 6a. Install the Avalara Tax Compliance app

1. From your Shopify admin, go to Settings and click Taxes and duties.
2. Click Manage in the Tax service pane.

1. Next to the Avalara Tax Compliance app, click Install.

7. From the Avalara Tax Compliance page, click Install Avalara Tax Compliance.

8. To install the Avalara Tax Compliance app, click Install.

You have successfully installed the Avalara app.

Next, you'll see the Connect to your production account page. You can leave this page and proceed to the next step: giving Reach access to the Avalara app.

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Please do not activate the Avalara Tax Compliance app, this is will be done by your Reach representative during the scheduled go-live call.

Step 6b. Activate the Avalara Tax Compliance app

• Avalara Tax Compliance displays Active
• Regional settings display Backup only
• Understand Shopify-specific warnings
• Ensure the tax display for each market is correct
• Verify that "Include sales tax in product price and shipping rate" is turned off

Avalara Tax Compliance displays Active

After your Reach representative has activated the Avalara Tax Compliance app, go to Taxes and duties and verify that Avalara Tax Compliance displays Active, indicating that Avalara now provides taxes and duties.

Regional settings display Backup only

The Regional settings on the Taxes and duties page should display Backup only because Avalara overrides Shopify's regional settings. You can disregard the list of countries under the regional settings.

Understand Shopify-specific warnings

You may see the following warnings once the Avalara Tax Compliance app is active. This is normal and nothing to worry about; the Avalara app is calculating taxes accurately.

Shopify displays warnings when Shopify Tax calculations are not working. In this instance, they are not working because Avalara is calculating taxes instead of Shopify Tax.

Product variant warnings

Marking items as non-taxable can cause incorrect tax calculations. Only gift cards or gift certificates can be marked as non-taxable, as they are exempt from taxation in all jurisdictions. Aside from gift cards, all products must have the Charge tax on this product option set to Yes for taxes to function correctly.

If you see this warning, check if you have products other than gift cards or gift certificates marked as non-taxable.

To find out if you have products marked as non-taxable, go to your Shopify admin:

1. Navigate to Settings, then select Taxes and duties in the side navigation bar.
2. If you have items marked as non-taxable, you will see the above warning stating: You are not charging taxes on some product variants.
3. Click Edit variants.
4. Under Charge taxes, select the checkbox to the right of any item for which you'd like to resume charging tax. If you do not see checkboxes, you do not have sufficient permissions to edit products.
5. Click Save.

Out of compliance with state sales tax laws

This warning can safely be ignored. The Avalara Tax Compliance app will handle state sales taxes.

Ensure the tax display for each market is correct

Ensure that all your markets display the tax correctly. The tax display for each market should look like what you set up in Step 3. Routing markets to entities.

Verify that "Include sales tax in product price and shipping rate" is turned off

On the Taxes and duties page, there is a checkbox under Global settings that asks if you would like to include sales tax in product price and shipping rate. This box must be clear. Selecting this checkbox will negatively impact tax calculations.

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Important

If the Avalara Tax Compliance app is active, selecting this checkbox will negatively impact the tax calculations.

Step 7. Set up alternative payment methods (optional)

See Set up alternative payment methods for Shopify (optional) for instructions.